A Stop order differs from a limit order in that it includes a stop price, which causes a market order to be granted.
A stop price is stated in Stop orders where you would select a price to short or long. A market order is triggered if the coin’s market price moves to the stop price. Stop orders, unlike limit orders, might have some slippage because there is usually a slight difference between the stop price and the subsequent market price execution. Stop order is placed when you forecast that the market will continue to move in the same direction.
Stop order can also be categorized into two:
If you believe the market will maintain its positive trend, you may pick a higher price to initiate a buy/long order.
If you believe the market will continue to be negative, you may place a sell/short order at a lower price.
See other order types: