A limit order that is executed when a specific trigger price is reached, wherein the trigger price is higher than the trading price at deployment.
Experienced traders might notice the similarities between a stop limit and a limit if touched order, the primary differentiator is that the trigger price is higher than the current market price, as opposed to lower. These order types are considered different primarily due to programming limitations on legacy systems. Many older platforms are unable to support two or more triggers at different possible execution ranges without breaking the system - they were separated out of practicality, instead of for the benefit of the user.
Due to its underlying programmable swap design, Axo allows you to build orders under whichever conditions you want, but will then assign them names based on conventional terminology. In other words, as Axo can easily execute such triggers, it makes the distinction between various order types primarily academic and kept for the benefit of the traders still used to the traditional terminology.
How it is usedJonathan is a technical analyst and has concluded that if ADA were to go above $0.5, then it is likely to hit resistance and fall below $0.45, which is below the initial trading price. As such, he places a stop limit order, where the trigger price is $0.5 but will only begin purchasing at $0.45 if it hits $0.5 beforehand. This order type allows him to buy ADA only once a specific action has been taken by the market, rather than having a blanket order that triggers as soon as it can be fulfilled.
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