Hacker News new | ask | show | jobs
by lbotos 3289 days ago
I'm not following why stop orders on Crypto are idiocy?
2 comments

You'd want to buy low and sell high; stop orders will force you to sell low in case of a random large fluctuation; cryptocurrencies are much more prone to random large fluctuation than most other types of assets. Ergo, agreeing to stop orders on cryptocurrencies is more dangerous than for other assets and is likely to cause you to lose money.
GP probably means stop -> market orders. When the stop price is reached, the order converts to market.

Various brokers and exchanges offer more types of stop orders, such as stop -> limit, where you set a limit price, and your order becomes a limit order after the stop price is reached.

Of course crypto exchanges take forever to implement new order types, and I'm not sure any of them have stop -> limit.

Also, stop orders don't work in general in a slipping market because liquidity vanishes from the book.

Don't know about the other ones, but the biggest exchange for alts, poloniex, has stop-limit.