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STOP LOSS Flashcards

1
Q

LIMIT ORDERs

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2
Q

LIMIT ORDERs

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3
Q

LIMIT BUY order:

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4
Q

LIMIT SELL order:

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5
Q

When we want to simply BUY

A

do not use simple market order < risk of slippage!
xx
xx
xx

https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0

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6
Q

CFTC

A

CFTC: Commoduty Futures Trading Commission

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7
Q

Order book

A

The collection of open buy side and open sell side orders for any given financial instrument
the set of all open orders

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8
Q

Seller side

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9
Q

Buyer side

A

BID
what the buyers offer for sellers
lower part (lower price range)
left side part (lower price range)
BID: kinalat, BIDders, supply, offer, bid

https://www.dropbox.com/s/4ty4qcq58rpgipq/Screenshot%202019-04-22%2009.28.25.png?dl=1

https://www.dropbox.com/s/feqn1cmec0m0h3s/Screenshot%202019-04-22%2009.30.36.png?dl=1

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10
Q

You have a (market) BUY order > SLIPPAGE : what is it about?

A

if our order can not be satisfied with the lowest price on the seller side (can not totally fill your order with the lowest possible)
then it will move up to the next lowest asking price >> SLIPPAGE
RISK of market orders!
slip can be high if we place large orders… or in case of a flash crash

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11
Q

Limit orders advantage

A

we can set a limit how much Slippage can happen

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12
Q

When Selling we need to set

A

When Selling weneed to set a minimum price (limit order)

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13
Q

When Buying we need to set

A

When Buying we need to set a maximum price (limit order)

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14
Q

Buy Limit orders taker/maker position

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15
Q

Sell Limit orders taker/maker position

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16
Q

STOP order

A

STOP (market) order:
Market order with a stop price (determines when the market order dispatched in the orderbook
>> delayed order: delayed until the STOP is triggered)
Similar to Limit orders, instead of a limit price they will have a Stop price > but similar permutations > 4 configurations
can have limit price > STOP LIMIT orders > 16 config

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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17
Q

STOP order - Limit order - STOP LIMIT order

A

STOP order is a Market order with a stop price
Limit order is a Market order with a limit price
STOP LIMIT order is a Limit order with a stop price (still at the STOP tab at Coinbase ?? (confused about it)

https://www.dropbox.com/s/ec48kl1hsi27w83/Screenshot%202019-04-22%2010.32.54.png?dl=0

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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18
Q

When is the Sell STOP triggered?

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19
Q

When is the Buy STOP triggered?

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20
Q

STOP Sell order warning

A

Sell side market order will be triggered when the price will be equal or less than STOP price
It will be executed at the highest bid (the highest bid what will be set in the future when the STOP price is triggering the market order dispatch;
if at that time there is a big sell off > the market price can run down extremely quickly
> our market order might take very low price…
>> slipagge risk, we get a warning notification) >> the price can be even lower…)

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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21
Q

The practical STOP Sell order configuration

A

STOP Sell order: Stop is on the Buy side
the Sell order is not dispatched immidiately (delayed)
Taker
Executed when the price goes below the STOP price

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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22
Q

The impractical STOP Sell order configuration

A

STOP Sell order: Stop is on the SELL side
the Sell order is dispatched immidiately (not delayed) >> not practical
it would be a Taker still
Executed when the price goes below the STOP price

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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23
Q

Sell STOP order, Ask side

A

Sell STOP order: Stop is on the SELL side
the Sell order is dispatched immidiately (not delayed) >> not practical
it would be a still a Taker
Executed when the price goes below the STOP price

https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0

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24
Q

Stop price is on the ASK side

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25
Stop price is on the BID side
BID side: The stop price is below the market price [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
26
BUY side STOP orders delayed until
the last price \>= stop price the price goes above/hits the stop price [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
27
The practical STOP Buy order configuration
STOP Buy order: Stop is on the ASK (Sell) side the Buy order is not dispatched immidiately delayed: waiting for the trigger, the price goes above/hits the STOP price Taker Executed when the price goes above the STOP price [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
28
The impractical STOP Buy order configuration
STOP Buy order: Stop is on the BID (Buy) side the Buy order is dispatched immidiately (not delayed, the price is already at lower level) \>\> not practical, equal to the Buy Market order it would be a still a Taker Executed when the price goes below the STOP price [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
29
All STOP orders are
Taker positions [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
30
STOP Buy order when?
STOP Buy order when we want to buy at a higher future price to close a short position (to stop the loss if price goes upwards) in case of a breakout strategy Does NOT protect from Slippage (warning) the Buy order is not dispatched immidiately delayed: waiting for the trigger, the price goes above/hits the STOP price TAKER Executed when the price goes above the STOP price [https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0](https://www.dropbox.com/s/yqaqs9ossrtxlt7/Screenshot%202019-04-22%2012.03.31.png?dl=0)
31
Stop Limit order
Delayed Limit orders: once the trigger condition registeres as true \> a limit order is dispatched to the orderbook \> matching engine matches as we saw before warning: the order may not fill in immidiately
32
STOP LIMIT orders danger
no garantee for matching in the gap between the STOP and the LIMIT we can find the bids potentially matching our sell order, but no garantee, especially if the gap is small or the price is dropping sharply [https://www.dropbox.com/s/ibr2sf9xi99fxnm/Screenshot%202019-04-22%2012.21.33.png?dl=0](https://www.dropbox.com/s/ibr2sf9xi99fxnm/Screenshot%202019-04-22%2012.21.33.png?dl=0) [https://www.dropbox.com/s/ybt2z1glvyzvuyh/Screenshot%202019-04-22%2012.23.11.png?dl=0](https://www.dropbox.com/s/ybt2z1glvyzvuyh/Screenshot%202019-04-22%2012.23.11.png?dl=0)
33
STOP LIMIT Buy order trigger
When the price rising goes above/hits the Stop price Limit above the the Stop price When trigger: the lowest asking price will be under our LIMIT price (our max price willing to pay)
34
Impractical STOP LIMIT Buy order
Stop is above the Limit price When the STOP triggered: the lowest asking price would be higher than our max (Limit) The price would be needed to fall for our order to be filled It would be a maker if Limit is above the Stop \> practical and taker, but this is the price we have to pay to make sure that our order gets filled [https://www.dropbox.com/s/16ixvvsyocltqwd/Screenshot%202019-04-22%2012.38.19.png?dl=0](https://www.dropbox.com/s/16ixvvsyocltqwd/Screenshot%202019-04-22%2012.38.19.png?dl=0)
35
when BUY LIMIT orders?
Buy Limit orders: when we want to get sg for a cheaper price (we want to set a maximum price) When we want to BUY lower; When we want to wait untill the price goes down to a certain level \> buy only then just like market orders, but they have limits [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
36
When we want to simply BUY on the current market
Slippage danger \> do not use simple market order Buy Limit Order (ALLOW Taker must be selected) Limit on the ask side \>\>Taker postion [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
37
When we want to simply BUY, but without fees
BUY LIMIT order limit on the BID side \>\> maker position, no fee [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
38
when SELL LIMIT orders?
Sell Limit orders: when we want to sell sg for a higher price (we want to set a minimum price) When we want to SELL higher, when price increases; When we want to wait untill the price goes up to a certain level \> sell only then just like market orders, but we have minimum limits (protection from slippage) [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
39
When we want to simply SELL on the current market
Slippage danger \> do not use simple market order SELL Limit Order (ALLOW Taker must be selected)(?) Limit on the BID side \>\>Taker postion [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
40
When we want to simply SELL, but without fees
SELL LIMIT order limit on the ASK side \>\> maker position, no fee with the Limit price: we set the minimum we want to get for the underluying [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0)
41
STOP orders
STOP orders : delayed market orders delayed matching process untill the orice raises/falls Taker positions [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
42
Sell side STOP orders allow to
Sell side STOP orders allow to DELAY the Market Order untill the price falls to the Stop price \>\> triggers a Sell market order Taker position [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
43
What can you do with a SELL STOP order?
to place the market order below the market price (BID/Buy side of the orderbook) [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
44
when to use: Sell side STOP orders
Sell STOP order: when the price falls: "STOP LOSS" STOPS for long positions. to get out of a position due to price dowturns price fall to the STOP prices triggers a Sell market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
45
"STOP LOSS" STOPS for long positions
Sell STOP order: when the price falls: "STOP LOSS" STOPS for long positions. to get out of a position due to price dowturns price fall to the STOP prices triggers a Sell market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
46
When Sell side STOP orders triggered? What happens then?
when price drops to the STOP price \> triggers a market order \> matching engine matches with the highest BIDDING price. Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
47
How to protect a long position?
Sell STOP order: "STOP LOSS" to get out of a position due to price dowturns price fall to the STOP prices triggers a Sell market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
48
How to to get out of a position in case of price dowturns?
Sell STOP order: "STOP LOSS" price fall to the STOP prices triggers a Sell market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
49
How is the Sell Stop ordered matched?
STOPS for long positions \> when the price drops to STOP \> triggeres a Sell market order \> matches with the highest BIDding price [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
50
On which side of the orderbook are the STOPs in case of a SELL STOP Order?
``` BID side Buy side (lower than the current price) \>\> Taker position, Slippage risk ``` [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
51
BUY side STOP orders allow to
Buy side STOP orders allow to DELAY the Market Order untill the price raises to the Stop price \>\> triggers a BUY Market Order Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
52
What can you do with a BUY STOP order?
to place the market order above the market price (SELL/Ask side of the orderbook) [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
53
when to use: Buy side STOP orders
Buy STOP order: when the price raises: "STOP LOSS for shorts" To take a long position in case of breakout strategy price raises to the STOP prices triggers a Sell market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
54
"STOP LOSS for shorts"
Buy STOP order: when the price raises: to get out of a short position due to price upturn price raise to the STOP prices triggers a Buy market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
55
How to manage the Breakout strategy ?
Buy STOP order: when the price raises to the STOP price \>\> triggers a Buy market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
56
How to protect a SHORT position?
Buy STOP order: when the price raises: to get out of a short position due to price upturn price raise to the STOP prices triggers a Buy market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
57
How to to get into a position in case of a price upturn?
Buy STOP order: "breakout strategy" price raises to the STOP price triggers a Buy market order \>\> slippage danger Taker position, Slippage risk [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
58
How is the Buy Stop order matched?
STOPS for Short/breakout long positions \> when the price raises to STOP \> triggeres a Buy market order \> matches with the lowest ASKing price of the orderbook [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
59
On which side of the orderbook are the STOPs in case of a Buy STOP Order?
``` ASK side Sell side (higher than the current price) \>\> Taker position, Slippage risk ``` [https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0](https://www.dropbox.com/s/idmk93muadqiaux/Screenshot%202019-04-22%2019.26.57.png?dl=0)
60
Using Stops we should always...
Using Stops we should always specify a Limitprice ! \>\> STOP LIMIT Orders: delayed limit orders
61
How do STOP LIMIT Orders work?
they work as Limit orders do, but they are delayed \> once triggered \> they are posted as a Limit order (instead of a market order) [https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0](https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0)
62
What type of Limit Stop orders we want to use? Why?
when using Stops \> we want our order to be TAKERs \> ensures matching immediately [https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0](https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0)
63
What if we use Maker Stop Limit orders?
it can sit there indefinetly as the price goes against us might be never filled in [https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0](https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0)
64
in case of SELL side STOP LIMIT orders: how STOP LIMIT positioned?
SELL STOP LIMIT orders: STOP above the LIMIT! ensures that the STOP is triggered before the price falls below the LIMIT (our minimum) no garantee that the order will be filled we can not solely rely on STOP LIMITs to protect our positions! [https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0](https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0)
65
in case of BUY side STOP LIMIT orders: how STOP LIMIT positioned?
BUY STOP LIMIT orders: STOP below the LIMIT! ensures that the STOP is triggered before the price is on the way UP before the price raises above our limit (our maximum). no garantee that the order will be filled we can not solely rely on STOP LIMITs to protect our positions! [https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0](https://www.dropbox.com/s/exa1y34wanrfxjj/Screenshot%202019-04-22%2019.20.18.png?dl=0)
66
Post only
Maker only; do not allow to execute as a taker good whenever we want to post our order on the top of the orderbook this option only available in LIMIT section not in STOP or MARKET! the price can move rapidly \> by the time our order is submitted \> it could execute as a taker \> to prevent this only MAKER option = POST ONLY. (the order will be rejected is there is no place for it in the orderbook)
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ALLOW TAKER
we allow for order to take from the orderbook \> will be filled immediately as a taker.
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Post only example: Buy Limit order for an asset: Limit Price: $900; Asset price: $875; post only option \>\> what happens?
Rejected We want to buy from the ASK side ($900 is above $875 the current price) Maker order price can only be chosen from the BID side (below $875) the Limit order can be executed with the "Allow taker" option for the lowest Asking price in the order book \>\> Fee (Post only function: available for Limit orders only)
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When do we want to use Limit orders?
we always want to use Limits even with fee as a taker to have control on the execution of the order [https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0](https://www.dropbox.com/s/hqdrlu0hznrphmx/Screenshot%202019-04-22%2019.33.44.png?dl=0) | (LIMIT protect us, we can define a maximum buy price or minimum Sell price \>\> to avoid Slippage risk)
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When will Limit Order fill in with the "Allow Taker" option?
with Allow Taker option: our order filled immediately with the lowest asking price
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Where should be the Limit in case of a Limit Sell order if we want to execute with "Post only" option
"Post only" = Maker only Limit should be on the ASK side Limit Sell order will be Maker if the Limit price chosen from the ASK side of the orderbook if limit chosen from the wrong side \> would get rejected
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What order: When you want simply to BUY to enter into the market and you want our order to be filled in
BUY LIMIT order on the ASK side Taker (fee); ALLOW TAKER must be selected (ensures that it will get filled in) Slip protection do not use simple market order \< risk of slippage! [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=0](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=0)
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When: BUY LIMIT order on the ASK side?
When you want simply to BUY to enter into the market and you want your order to be filled in Taker (fee); ALLOW TAKER must be selected (ensures that it will get filled in) Slip protection do not use simple market order \< risk of slippage! sets the max price we want buy for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=0](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=0)
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What order: When you would like to wait untill the price goes down only BUY then for a cheaper price
BUY LIMIT order on the BID side Post Only (Maker only), NO Fee Slip protection good whenever we want to post our order on the top of the orderbook (meanwhile the order the market price can shift on the TAKER side of the orderbook \> only maker (post only) to avoid sets the max price we want buy for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=1](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=1)
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When: BUY LIMIT order on the BID side?
When you would like to wait untill the price goes down only BUY then for a cheaper price. good whenever we want to post our order on the top of the orderbook (meanwhile the order the market price can shift on the TAKER side of the orderbook \> only maker (post only) to avoid sets the max price we want buy for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=2](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=2)
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What order: When you want simply to SELL to leave the market and you want your order to be filled in
SELL LIMIT order on the BID side ALLOW TAKER must be selected (ensures that it will get filled in) Slip protection do not use simple market order \< risk of slippage! sets the min price we want sell for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=3](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=3)
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When: SELL LIMIT order on the BID side?
When you want simply to SELL to leave the market and you want your order to be filled in ALLOW TAKER must be selected (fee) sets the min price we want sell for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=4](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=4)
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What order: When you would like to wait untill the price goes up only SELL then for a gretater profit
SELL LIMIT order on the ASK side Post Only (Maker only), no fee sets the min price we want sell for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=5](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=5)
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When: SELL LIMIT order on the ASK side?
When you would like to wait untill the price goes up only SELL then for a gretater profit Post Only (Maker only), no fee sets the min price we want sell for [https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=6](https://www.dropbox.com/s/guqhlcg9byd723s/Screenshot%202019-04-24%2022.27.59.png?dl=6)
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SELL STOP order without Limit
they might be used without LIMIT, but they do not protect from slippage when price rapidly moves down. not recommended without limit
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BUY STOP order without Limit
they might be used without LIMIT, but they do not protect from slippage when price rapidly moves up not recommended without limit
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What order: When you would like to wait untill the price goes up only BUY then?
BUY STOP LIMIT order (breakout strategy or STOP LOSS of a SHORT position) inside of the STOP? taker [https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0](https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0)
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When: BUY STOP LIMIT order
When you would like to wait untill the price goes up only BUY then. (breakout strategy or STOP LOSS of a SHORT position) taker [https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0](https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0)
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What order: When we want to SELL because off falling price
SELL STOP LIMIT order. inside of the STOP? (we want to get out of a position to STOP the loss, we want a minimum price to lock in in case the price drops) taker [https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0](https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0)
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When: SELL STOP LIMIT order
we want to get out of a position to STOP the loss, we want a minimum price to lock in in case the price drops taker [https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0](https://www.dropbox.com/s/y3jai3daxqm9jor/Screenshot%202019-04-24%2022.48.38.png?dl=0)
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STOP LIMIT BUY order: whrere the STOP ; LIMIT where?
STOP only makes sense on the SELL side (otherwise executed immediately); LIMIT above the STOP to take it (otherwise can get stuck if price goes against us (taker) [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=0](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=0)
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When BUY side STOP orders delayed
if price is below the STOP price [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=1](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=1)
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When STOP SELL orders triggered
STOP SELL orders triggered when the price goes below/ hits STOP price [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=2](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=2)
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STOP LIMIT SELL order: whrere the STOP ; LIMIT where?
STOP only makes sense on the BUY side (otherwise executed immediately); LIMIT below the STOP to take it (otherwise can get stuck if price goes against us (taker) [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=3](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=3)
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Using Stops we should always...
Using Stops we should always specify a Limitprice ! \>\> STOP LIMIT Orders: deleyed limit orders [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=4](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=4)
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What are STOP LIMIT Orders?
delayed limit orders they work as Limit orders do, but they are delayed \> once triggered \> they are posted as a Limit order (instead of a market order). [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=5](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=5)
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when using Stops \> we want our order to be..
when using Stops \> we want our order to be TAKERs \> ensures matching immediately. it can sit there indefinetly as the price goes against us [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=6](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=6)
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in case of SELL side STOP LIMIT orders: STOP is..
in case of SELL side STOP LIMIT orders: STOP above the LIMIT! [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=7](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=7)
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in case of BUY side STOP LIMIT orders: STOP is..
in case of BUY side STOP LIMIT orders: STOP below the LIMIT! [https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=8](https://www.dropbox.com/s/q6vhidoob73jkl1/Screenshot%202019-04-24%2022.55.23.png?dl=8)

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