Make Sure to Use Stop Orders

One of the most useful tools in trading is the stop order. A stop order will always be executed once a given stop (trigger) price is reached. For this reason, some exchanges simply call it a trigger order.

Stop Order

There are two types of stop orders; the stop loss and stop limit orders. With a stop loss order a normal market order will be executed once triggered, similarly a normal limit order will be executed once triggered in a stop limit order. The embedded trigger provides great value for managing positions. It is possible to set a stop order after taking a position, for example to enforce a certain trading strategy or to avoid having to watch exchange rates continuously. Unfortunately, not every Bitcoin exchange supports this order type, but the availability can be checked in the Digiconomist exchange reviews.

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