A Stop Order is a buy or sell order that is triggered once a digital asset reaches a specific price point, which is known as the stop price.
Stop Buy Order
Let's say XRP is currently trading at PHP 15.158, but you anticipate that the market price will go up. While you don't want to buy yet at this price, you don't want to miss out on buying some altogether before its market value skyrockets. Thus, you decided that you will buy some once it reaches PHP 16.00. This is when you should place a stop buy order.
To do this, simply go to the stop order panel on the lower part of your PDAX dashboard, set your stop price at PHP 16.00, and click Buy to finalize.
If at some point, the market price of XRP reaches PHP 16.00, a market buy order will be triggered to buy XRP at that market price.
Stop Sell Order
However, if you anticipate that the price of an asset that you hold will go down, you can place a Stop Sell Order so you can sell it before its price becomes too low for you.
To place a stop sell order, go to the stop order panel, set your stop price, and click Sell to finalize.
For example, in the scenario above, you can set your stop price at PHP 10.00 while the current market value of XRP is PHP 15.158.
If the market price drops to PHP 10.00, a market order will be triggered to sell the number of XRP that you indicated in the quantity field at that market price.