Cryptocurrency Q&A What is the difference between a stop limit and a stop-loss?

What is the difference between a stop limit and a stop-loss?

Eleonora Eleonora Sun Dec 01 2024 | 6 answers 1356
I am trying to understand the difference between a stop limit and a stop-loss order in trading. I want to know how each of these orders works and how they differ from each other in terms of their function and purpose. What is the difference between a stop limit and a stop-loss?

6 answers

Silvia Silvia Tue Dec 03 2024
In contrast, a stop-limit order provides traders with the assurance of a specific price but does not guarantee that the transaction will be executed.

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Valentina Valentina Tue Dec 03 2024
The choice between these two order types can significantly impact the price paid for an asset and the overall returns earned from a trade.

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Federica Federica Tue Dec 03 2024
Understanding the nuances of each order type is crucial for making informed decisions in the stock market.

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BitcoinBaroness BitcoinBaroness Tue Dec 03 2024
A stop-loss order is a type of trading instruction that ensures a transaction will take place but does not guarantee the exact price at which it occurs.

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Leonardo Leonardo Tue Dec 03 2024
Different market conditions may favor one order type over the other, depending on the trader's risk tolerance and investment goals.

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