A stop-market is a type of order that will be activated and then turn into a market order when the trigger price you set has been reached.
Like any market order, a stop-market order will be executed immediately at the best market price at the moment it is activated.
This means that a stop-market order will not necessarily be executed at the stop price.
In most cases, a stop-market order is filled at a price worse than the stop price, depending on the volatility of the market or how quickly the order can be executed.
Steps to create stop-market order:
- Access the order book page: https://www.novadax.com/en/product/orderbook
- Choose the pair you want to trade-in (BTC/USDT for example)
- On the right side, click on "Market" and then tick "stop" to define 2 parameters to create a stop-market order:
1) Stop price: The market price at a moment in the future that will activate the order and turn it into a market order.
2) Amount: The number of coins that you are willing to spend to buy or to sell.
There is no need to set a purchase or sale price.
The price to buy BTC in USDT is 9,752.03 and you want to place a stop-market order with a stop price of 9,700.
Just enter the stop price and the amount you want to buy and click on "BUY BTC".
The order will stay open whilst waiting for the stop price to be reached. This will activate the order and turn it into a market order and will then be executed at the best market price available.