Understanding Ethereum: What does "order buying a stop" in Bitstamp mean?

In the world of crypto -shop, the purchase and sale of shares in digital field can be as complex as traditional markets. Two key concepts, which often confuse newcomers traders, are orders to stop stopping and orders for sale stops. One of these orders is an order for detention that plays an important role in the Bitcoin market for exchanges such as Bitstamp. In this article, we deepen what orders mean and how they work.

What is the later stop?

The opening stop is an automatic purchase or sale function designed to avoid losses when prices are moving against you. It is basically a price level that the trader wants to reach, at that time they leave their business. This can be used in several markets, including futures contracts, possibilities and even cryptocurrencies such as bitcoin.

What does an order of stopping buying in Bitstamp mean?

The rear stop order is similar to the purchase with the price limit set under the current market price. When you make this type of order, your loss of stop will automatically sell your bitcoin at the first point where you reach or exceed the established price. This means that if the price of bitcoin drops after the maximum reaches and then begins to increase again before reaching the purchase price, its position will not be sold immediately.

Key features:

-
Set of output price:



The minimum amount for which you want to sell your Bitcoin.

-
Type of limit order: The final stop order is usually an executable stop order. This means that as soon as it is placed and the price reaches or exceeds the established stopped price, its position is automatically sold.

How does stopping buying in Bitstamp work?

If you want to finally use a stop purchase using Bitstamp, follow the following steps:

• Sign in to your Bitstamp account.

• Choose a moment of bitcoins you want to trade.

• Go to
  order management and click
  order limit
  
  
  
  
  .

• Select the order type (in this case the final stop order).

• Enter the stopped price you are willing to sell your Bitcoin.

• Determine the timeframe when you want to enter or leave the market depending on the risk management strategy.

Conclusion

Understanding how orders of buying work stops are necessary for anyone who wants to exchange cryptocurrencies, including those that use platforms such as Bitstamp. When determining the stop price and determining a particular type of order (in this case an enforceable stop order), operators may minimize potential losses if the market is moved against them. Always remember that the lever effect store means that you could lose more than your initial investment; Therefore, it is necessary to determine the realistic levels of detention on the basis of market conditions and risk tolerance.