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Stop-Limit

  • Updated

A stop-limit will place a limit order at the chosen limit price, only once the trigger price has been hit. The mark price, index price, or last price can be chosen as the trigger. For a stop limit order to buy, the trigger price needs to be higher than the current price of the instrument. For a stop limit order to sell, the trigger price needs to be lower than the current price of the instrument.

Additional details

It is important to note that the likelihood of a stop limit order getting filled after it is placed is heavily dependent on how it is set up. Specifically on how much deeper into the book the chosen limit price is than the trigger price. This is particularly important when using a stop limit as a stop loss, because if the order fails to get filled, the position will remain open, potentially leading to extra losses.

Example of order

For example, let’s assume Bitcoin is currently trading with a best bid of $100,000 [2] and a best ask of $100,001 [3]. Our example stop limit order to sell has a trigger price of $100,000 [2]. If the market trends down and the trigger price [2,4] is reached, the stop limit order will be triggered and placed. Where the limit order is placed depends on the limit price chosen when the order was created, and this could be below [6] or above [5] the trigger price. In this example, if the limit price is $99,999, it is more likely to be filled than if the limit price is $100,001.

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Placing a stop limit on Deribit

  1. USD or asset selection. Choose whether you want to enter the size of the order in USD or an amount of the underlying asset. Values will be rounded to the nearest valid amount.

  2. RFQ. This button allows traders to send a notification to market makers that indicates they are interested in trading the instrument. This will allow market makers to put a quote into the order book for the requested size. This button is informational only, not an execution mechanism.

  3. A profit and loss calculator.

  4. Order type. Some order types are not available for certain instruments.

  5. Order amount

  6. Order price

  7. Trigger Price - The price which once reached, will trigger the placement of the order.

  8. Trigger

    • Mark - When “Mark” is selected for the trigger price, the mark price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

    • Last - When “Last” is selected for the trigger price, the last traded price of the instrument reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

    • Index - When “Index” is selected for the trigger price, the index price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

  9. Buy and Sell buttons

  10. TIF

    • Good till cancel (GTC) - GTC is the default setting. The order will remain open until it is filled, cancelled, or the instrument expires.

    • Good till day (GTD) - If it has not already been filled or cancelled, the order will be cancelled automatically at the end of the current daily session (8 AM UTC).

    • Immediate or cancel (IOC) - Any portion of the order that cannot be filled immediately will be cancelled.

    • Fill or Kill (FOK) - The order is either filled immediately and completely, or not at all.

  11. Special ordertype

    • Reduce (reduce_only) - This setting will ensure the order can only reduce an open position. It can not increase the size of any existing positions, or open any new positions.

    • A hidden order will sit in the order book, but will not be visible to other traders. A hidden order will always match as a taker order for fee purposes. Non-hidden orders at the same price level have a preference over hidden orders in the matching engine.

    • Post only (post_only) - This setting will ensure the order will not act as a taker, and therefore will not match against orders that are already resting in the orderbook (excluding hidden orders). If the price of the order is such that it would otherwise execute against the best available price, the post only order will be placed into the order book one tick away from the best available price.

  12. The current position size on the selected instrument.

  13. The maximum leverage possible on the instrument.

  14. Take profit as secondary order.

    1. On/Off toggle.

    2. Order type. Some order types are not available for certain instruments.

    3. Trigger Price - The price which once reached, will trigger the placement of the order.

    4. Order price

    5. Trigger

      • Mark - When “Mark” is selected for the trigger price, the mark price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

      • Last - When “Last” is selected for the trigger price, the last traded price of the instrument reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

      • Index - When “Index” is selected for the trigger price, the index price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

    6. Special

      • Reduce (reduce_only) - This setting will ensure the order can only reduce an open position. It can not increase the size of any existing positions, or open any new positions.

    7. Estimated profit if the primary order is filled and then the secondary order is also filled.

  15. Stop-loss as secondary order.

    1. On/Off toggle.

    2. Order type. Some order types are not available for certain instruments.

    3. Trigger Price - The price which once reached, will trigger the placement of the order.

    4. Order price

    5. Trigger

      • Mark - When “Mark” is selected for the trigger price, the mark price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

      • Last - When “Last” is selected for the trigger price, the last traded price of the instrument reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

      • Index - When “Index” is selected for the trigger price, the index price reaching or crossing the chosen trigger price will trigger the placement of the conditional order.

    6. Trigger Offset - Used to set the maximum distance from the current price for a trailing stop.

    7. Special

      • Reduce (reduce_only) - This setting will ensure the order can only reduce an open position. It can not increase the size of any existing positions, or open any new positions.

    8. Estimated profit if the primary order is filled and then the secondary order is also filled.

  16. Initial margin requirement

  17. Position impact PM (portfolio margin).