A stop order is used to trigger a market sell when the market drops to your trigger (stop) price or used to trigger a market buy if the market rises to your trigger (stop) price.
How to place a Stop Order on Bitfinex?
1. Firstly, log in to your Bitfinex account.
2. Upon login, you should be landing on the trading page. Alternatively, you can navigate to your trading page using this link.
3. Here, you can select the relevant trading pair from the ticker.
4. Following that, from the order form drop-down option, pick Stop.
5. Then, depending on the sort of order you want to execute, you can also select Exchange or Margin from the same order form.
Note: The default will be on Exchange.
6. You can then fill out the price and amount and proceed to either sell or buy.
Note: To execute a stop order on Bitfinex, you must first check the I Understand What Stop Order Is box.
How to use Stop order?
A Stop order can be used on both Exchange and Margin modes of trading. But it’s more frequently used as a stop-loss order if the market is moving against an open margin position. Stop orders will fully execute as a market order once the trigger price is reached.
Example: If the current market price is 250, the trader in a long position might want to sell if the price reaches 245. A stop sell at 245 will be used in this case.
A trader would place a stop buy above the current price if shorting. This means that if the market moves in their favour (going up), they can reduce their losses by closing or reducing their short position by buying.
Example: If the current market price is 250, the trader in a short position might want to buy if the price reaches 255. A stop buy at 255 will be used in this case.
You can find more information about additional Bitfinex Orders here.
If you have any questions about the stop orders, feel free to contact Bitfinex Support for further assistance.