Stop market

A market order that is executed when a specific trigger price is reached, wherein the trigger price is higher than the trading price at deployment.

How it worksStop market order explained

A stop market order operates under two phases: During this first stage, it is on standby awaiting a specific trigger price. Once this price reaches a predetermined level, a market order is filled against the order book.

It’s worth noting that a stop market order is nearly identical to a market if touched order variant, but it’s differentiated by the fact that the trigger price is higher than the current market price, as opposed to the contrary situation. 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.

Illustrative AXO price: 12.5 ADA
Use case

How it is used

Alexander is looking to sell his ADA once he has doubled his originally invested capital. If the market price reaches twice that of his original investment, he will not be overly concerned about minor price variations and simply wants to lock in his profits as soon as possible. As such, he places a stop market order, which will begin selling his ADA for DJED at then-current market prices once the trigger price is reached, irrespective of the volatility that is present in the market at that point.

vector image
Are you ready?

Start using stop market orders now

Axo puts you in charge of your assets and empowers you to create and define what value means. We give you the precision tools that few professional traders have access to.