Stop Orders

The appeal of using Stop Orders is that traders are able to trade a breakout on the market. There are two types, namely

Buy stop is an order to buy at a specific price above its current market price.

Sell stop is an order to sell at a specific price below its current market price.

In Bybit, traders can make use of a Conditional Order to set up a stop order indirectly. Please follow the following steps below to execute a Buy Stop or Sell Stop respectively. 

 Buy stop

• Choose a conditional Limit Order(set a specific price) or a Conditional Market Order;
• Set a trigger price which is higher than the current market price;
• Click Buy/Long to place your order;
• When the market price hits the trigger price, the corresponding Limit or Market order will be activated.

For example:

At present, the BTC Last Traded Price is 6,000 USD. If the trader wants to make a buy Stop Loss when the price breaks through 6,500 USD, he or she can perform:

1) Conditional Market Order: set a trigger price of 6,500 USD. When the market price reaches 6500 USD, the trader's buy order will be executed.

2) Conditional Limit Order: Set a trigger price of 6,500 USD, and set a limit price of 6,500 USD; when the last traded price reaches the trigger price, the order will be executed at the specified price of 6,500 USD according to the market depth. (This method is applicable to traders who are worried that the market depth is not deep enough when the last traded price reaches the trigger price and that a market order may lead to an undesired average execution price.)

Sell Stop

• Choose a Conditional Limit Order(set a specific price) or a conditional market order;
• Set a trigger price which is lower than the current market price;
• Click Sell/Short to place your order;
• When the market price hits the trigger price, the corresponding Limit or Market Order will be activated.

For example:

At present, the BTC market price is 6,000 USD. If the trader wants to sell the stop loss when the price falls to 5,500 USD, he can perform:

1) Conditional Market Order: set a trigger price of 5,500 USD. When the market price reaches 5,500 USD, the trader's sell order will be executed

2) Conditional Limit Order: set a trigger price of 5,500 USD, and then set a transaction price of 5,500 USD; when the market price reaches the trigger price, the order will be executed at the specified price of 5,500 USD according to the market depth. (This method is applicable to traders who are worried that the market depth is not deep enough when the last traded price reaches the trigger price and that a market order may lead to an undesired average execution price).