Buy Limit Vs. Buy Stop

Buy Limit Vs. Buy Stop (Binance)

The price of the cryptocurrency changes very quickly. So being active to trade is one of the important parts on the Binance. Today we are going to discuss the Buy Limit Vs. Buy Stop (Binance).

If you are not actively involved in the trade of the cryptocurrency but do not want to miss the chance. Then the above mention terms can play a vital role for you.

Stop Limit

The price of the cryptocurrency can shift any moment which cannot be predicted by anyone. So Binance provides you the facility of stop limit order which will buy or sell at the moment you desired. In this, there are two terms which play a crucial role.

Stop Price

Stop Price is the point set up by the user to start the stop limit order. It is executed to buy or sell the coin at the best rate possible.

Limit Price

Limit Price is the cost set up by you when the Stop Limit order is executed.

Buy Limit Vs. Buy Stop (Binance)

These are the configuration set up by the user when he or she wants to buy the cryptocurrency at the desired price. Some people get confused in these terms because of the similarity. But you can distinguish between them.

We are going to elaborate the term “Buy Limit” and “Buy Stop”. So that you do not get confused in these terms.

Buy Stop

When you use the stop limit order in the Binance there is a term “Buy Limit”. In this, you have to enter the value at which you want to start the stop limit order.

For Example, the price of the cryptocurrency is 100 and you want to buy it as soon as it reaches the 105. So you have to enter the price of the currency 105 in the box provided to start the stop limit order.

When the price of the altcoins reaches the established mark the stop limit order will be triggered and the buying process will start.

Buy Limit

You are setting up the stop limit order for buying the cryptocurrency. So in the buy limit, you have to enter the value at which you want to execute the process.

For Example: Taking on the above example. If you want to buy the cryptocurrency at your desired rate, let’s say, at 110 then you should enter the value and the stop limit order will execute or buy the currency. The moment it reaches the value fixed by you.

When you enter both the value you also have to decide how many cryptocurrencies you want to buy.

Final Words

We hope that you found the answer to the question you were looking for. From the above-mentioned article you can easily describe the difference between the buy limit and buy stop.  You can share this article Buy Limit Vs. Buy Stop (Binance) to the person who is facing this kind of confusion.

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