The Stop Limit or Stop-LOSS on BitMEX
Next, to the Market option, we have the Stop Market Option and Watch Carefully There is a Downwards Arrow Right After The STOP-MARKET Option Click on That and Select STOP LIMIT Option. This Option is Used to Extract our Order (Buy/ Sell) only if a Certain Stop Price is Triggered. This is mainly used as a Stop-Loss, to Cut Losing Positions and Minimize the Loss.
Stop-Loss means – “Sell on my Command at a Certain Price if the Market Reaches a Certain Price”. Let’s say if we are Starting a SHORT (SELL) of 1 BTC size ($7800) at BTC = 7800$, and We Want to Lose No more than 50$, then We Set our Stop Loss to be as follows: The STOP Price will be 7845, the Limit Price will be Set to 7850. This way as the price Touches 7845 our Command to BUY $7800 at 7850 will be Triggered, which will End our Position and Limit our Loss to Around 50$.
Tips for using Stop-Limit: If you Short/ Sell – make sure limit price is always Higher than the Stop Price and the Opposite if you Long /Buy. Also, Tight Stops are a good idea so you limit your Loss, but keep in mind, in the Volatile Crypto Market a Position with a very Close Stop Order can easily Get Terminated. You can always create a Stop Limit command for only part of your position.
#BitMEX Leverage Trading ✌️