A stop-limit order is an order to place a regular buy or sell order (also known as a "limit order") when the highest bid or lowest ask reaches a specified price, known as the "stop." This strategy be helpful for protecting profits or minimizing losses.
The stop-limit box has three inputs:
1. Stop: Think of this as the "trigger price." If you place a stop-limit order to sell, it will turn into a regular limit order when the highest bid drops to or below the stop. If you place a stop-limit order to buy, it will turn into a regular limit order when the lowest ask raises to or exceeds the stop.
2. Limit: This is the same thing as the "Price" on a regular buy or sell order. Once your stop-limit order has been triggered by the highest bid or lowest ask reaching your stop price, it turns into a buy or sell order for the price you enter in the limit field.
3. Amount: This is the same as the "Amount" on a regular buy or sell order. It indicates the amount of coins you wish to buy or sell should your stop-limit order be triggered.