Advanced traders can now optimize cost, reduce risk and gain added efficiencies on trades through two new advanced order types now live on Kraken and Kraken Pro.
Stop Loss Limit
With our Stop Loss Limit order, you enter both a stop price and a limit price. If the stop price is reached, a Limit order is created at the limit price.
Take this example:
- Suppose you buy 1 BTC at $9,500, but want to limit your loss to $400
- You can create a Stop Loss Limit order with a stop price of $9,105 and a limit price of $9,100. If the market drops to $9,105, a $9,100 Limit sell order is created.
- The limit price can be equal to or greater than the stop price, but in most cases it’s best to make the limit price a bit lower to help the limit order execute faster.
Learn more about the Stop Loss Limit order in our Support Center.
Take Profit Limit
With the Take Profit Limit order, you can enter both a profit price and a limit price. If the profit price is reached, a Limit order is created at the limit price.
Here’s how it works:
- Suppose you buy 1 BTC at $9,500 and are looking for a profit of $400.
- You can create a Take Profit Limit sell order with a profit price of $9,905 and a limit price of $9,900. If the market rises to $9,905, a Limit sell order at $9,900 is created.
- The limit price can be equal to or greater than the profit price, but in most cases it’s best to make the limit price a bit lower to help the Limit order execute faster.
Learn more about the Take Profit Limit order in our Support Center.
Advanced Limit Orders vs. Advanced Market Orders
In deciding which advanced order option to use in your own trading, it’s important to remember the difference between Limit and Market orders. Limit orders prioritize price over execution, meaning that they will only execute if the limit price (or better) is available.
Hence, they come with the danger that the order may not fully execute. Market orders prioritize execution over price, meaning that they will execute quickly, but with no guarantee on price.
P.S. Stop Loss Limit and Take Profit Limit orders will soon be available on the Kraken Pro mobile app as well.
Download the Kraken Pro App from the App Store or Google Play: