Stop orders are a powerful tool for crypto traders, allowing automated responses to market movements without constant monitoring. BISON's platform now offers this feature alongside limit orders, streamlining your cryptocurrency trading strategy.
Understanding Stop Orders
The crypto market operates 24/7, unlike traditional stock exchanges with fixed trading hours. This non-stop activity means price fluctuations can occur when you're unable to actively trade. Stop orders solve this by letting you preset buy/sell triggers that execute automatically when target prices are reached.
Key Benefits:
- Automated trading without constant market watch
- Precisely timed entries and exits
- Emotion-free execution at predetermined levels
Stop Buy Orders: Strategic Purchasing
A Stop Buy Order ensures you acquire cryptocurrencies as prices rise, preventing you from missing opportunities or paying substantially higher later.
How It Works in BISON:
- Set your desired purchase price
- Specify the cryptocurrency amount
- Orders remain active for 90 days (or until manually cancelled)
- Required Euro funds are reserved for the order
👉 Master stop order strategies to optimize your entry points.
Stop Loss Orders: Risk Management
The Stop Loss Order protects against excessive losses during price declines by automatically selling at your specified threshold.
BISON Implementation:
- Define your minimum acceptable sale price
- Set the crypto quantity to sell
- 90-day active period (cancel anytime)
- Corresponding crypto holdings are reserved
Stop Order vs. Limit Order: Key Differences
| Order Type | Purpose | Ideal Scenario |
|---|---|---|
| Stop Buy | Purchase during upward trend | Avoid missing rising opportunities |
| Limit Buy | Buy at/below target price | Capitalize on price dips |
| Stop Loss | Sell during declines | Limit potential losses |
| Limit Sell | Sell at/above target price | Secure profits at peaks |
Market Condition Guide:
| Rising Prices | Falling Prices | |
|---|---|---|
| Buy | Stop Buy | Limit Buy |
| Sell | Limit Sell | Stop Loss |
Creating Stop Orders in BISON: Step-by-Step
1. Access Trading Rules
Navigate to "Manager" → "Trading Rules" in your BISON account.
2. Select Order Type
Choose between:
- Stop Buy ("Purchase")
- Stop Loss ("Sell")
Specify the single cryptocurrency involved (create separate orders for different coins).
3. Define Parameters
- Stop Price: Execution trigger
- Quantity: Crypto amount
- Euro Amount: Investment value (auto-calculates from other inputs)
👉 Advanced order techniques can enhance your trading precision.
4. Confirm Order
Verify all details in the summary screen and select "Create Rule" to activate. Orders appear in the Manager section for monitoring/deletion (editing isn't permitted).
FAQ: Stop Order Essentials
Q1: Can I modify an existing stop order?
A: No, BISON doesn't allow order edits. Cancel the existing order and create a new one with updated parameters.
Q2: What happens if my account lacks sufficient funds when the trigger hits?
A: The order won't execute. Ensure adequate Euro/crypto balances remain available throughout the order duration.
Q3: Are stop orders guaranteed to execute at my exact stop price?
A: During high volatility, actual execution may vary slightly from your stop price due to rapid market movements.
Q4: Can I place both stop and limit orders simultaneously?
A: Yes, these order types complement each other for comprehensive trading strategies.
Q5: Why does BISON limit orders to 90 days?
A: This prevents forgotten orders from executing under potentially outdated market conditions.
Q6: Do stop orders work during all market conditions?
A: They require adequate liquidity. During extreme volatility or illiquid markets, execution may be delayed.