re: Official CryptoTalk Thread

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Can someone explain to me how to execute (correctly) limits and stops. I'm new to this and I fricked it up earlier

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Sorry for your loss, presumably, but this cracks me up.

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For example, if I want to sell my ETH if the price drops below $260, what would I need?

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Not sure what options are available on which exchange, but you'd enter a stop order, or a stop-limit order. The stop price is the price when the order becomes actionable, so a $260 stop order becomes a market sell order if the price gets to $260. A stop limit order has a stop price, $260, and a limit price, usually $260 as well. If the price gets to $260, you're going to try to sell your ETH for at least l $260, but you won't accept any less than that. It is possible the price could continue to fall and you're not going to be able to sell at $260, but the order will be there trying to be filled.

A regular stop order becomes a market order once the stop is reached, so if ETH falls to $240 and never really trades at $260, you could end up selling much lower than $260.

An experienced crypto guy can add what options are feasible specific to crypto. A stop limit order probably didn't execute during the flash crash the other day, which would have been a problem is the price stayed so low, but it also kept you from liquidating for $100 by accident as well.