When you place a Stop or Limit order, it means that you don't want to trade at the current market price, but that you want your order to be executed when the Market price moves in a certain direction. By choosing between placing a Stop or a Limit order you specify how you would like Bullex to fill your trades.
With a stop order, your order will be executed only when the currency you want to trade, reaches a predefined Market price (the Stop price). Once the currency has reached this price, a stop order essentially becomes a Market order and is filled as quickly as possible.
Suppose for example you have 10 Ether in your Bullex balance and you placed a Stop sell order for the ETHEUR pair with a Stop price of 180 Euro. Once the Market price drops below the 180 Euro your 10 ETH will be sold as soon as possible against the going Market price. If the market price drops immediately to 170 Euro, it may mean that is the price against which your ETH is sold.
With a Limit order you set the maximum or minimum price (the Limit price) at which you are willing to trade your Currency.
For example if you have 10 ETH in your Bulex balance and you want to sell for at least 200 Euro. You put in a Limit sell order with this Limit price at Bullex. Now when the Market price rises above 200 Euro your Limit order will be filled with transactions selling your ETH for at least 200 Euro. If the prices rises very fast, your selling price may even be better than 200 Euro.
Please note in this example that your Limit order may never fill when the ETH price does not rise above your Limit price of 200 Euro.
Main differences between Stop and Limit orders
Both a Stop and a Limit order are only triggered when the Market price hits the price set by you.
When the Market price hits your Stop price your Stop order will be completely filled as quickly as possible; however, a Stop order is not guaranteed to be filled at your preferred price.
A Limit order guarantees that the trade will be made at a particular price or better; however it is possible that your order will not be executed if the Limit price is not reached.
For both types of orders you pay a transaction fee when they are executed. For Stop orders the taker fees applies which is a bit higher than the Maker fee that applies to Limit orders. Please check out our exact transaction fees here.