RE: difference between limit order and stop-limit order on Binance (& others)
A stop order is reissued as a market order, once its triggering condition is satisfied (usually, that's just a price level being hit by one or more trades, but can have other constraints, such as volume.) A sell stop's triggering condition is satisfied when price trades at or below the trigger price. A buy stop's triggering condition is satisfied when price trades at or above its triggering price.
A stop limit order is reissued as a limit order, once its triggering condition is satisfied. By default, the limit price is the same as the stop price, but it can be different. If different, that's usually specified as a constant number of ticks different than the stop price, or as a constant percentage of the stop price.
A limit order is one that will not execute at a worse price than its specified price constraint, but might execute at a better price. For a buy limit, that means it will execute at any price at or below its price constraint. For a sell limit, that means it will execute at or above its price constraint. Note that this behavior is the inverse of a stop order.
Hope that helps.
Thanks, strategesis that does help.
However I am still a little confused about the inverse relationship. Is stop-limit only meant for stop-loss trades where I want to limit losses when price drops? Can it also be used if I want to execute an ask/sell above say .00006 and then only fill above .00007 (on the assumption that someone will be buying higher)?
I little drowsy now, think I may have to return to this in the afternoon...thanks again!
All three basic order types -- market orders, limit orders, stop orders -- can be used to either enter or exit a position. You can also use any one of them with either long or short positions, if the instrument you're trading is shortable.
So yes, you can use a stop limit to enter long, so that the limit order that gets submitted to the exchange once the stop is triggered prevents a bad fill price.
I'm having trouble setting up my trade on Binance. So if I have XRP at 0.00015 and hope it goes up to 0.00030, can't I set a stop limit buy where stop = 0.0003 and limit = 0.0003001, for example?
What I'm missing on Binance is: