In addition to opening orders immediately, we often need pending orders like "When the price reaches this level, I will buy".

But to make it more clear, we will distinguish Stop and Limit orders.

What is the difference between Stop and Limit orders?

Briefly about the 2 types of tenses

• Stop is the order to continue following the price trend when the order is hit.
• Limit are orders that go against the price trend when the order is hit.

For example, the current BTC price is \$6500. At this time, there are two children Ngoc Thuy and Mai Phuong Trinh sitting and talking to each other.

Trinh said "If BTC price goes up to \$7000, I'm sure it will go up again". (This is a statement that the trend will continue.)

Thuy said "Fuck you, if BTC price goes to \$7000, it will head back to \$5000". (This is a statement until then the trend will reverse, opposite the price trend at that time).

So at this moment, Trinh, thinking that the price will continue to trend and go up, will place a Buy Stop order at \$7000.

As for Thuy, because she thinks the price will turn around and go against the trend, Thuy will place a Sell Limit order at \$7000.

1 picture for easy visualization.
The blue part of the price in the picture shows the current price.​

The gray part shows the predicted price to move forward. And the corresponding command types.
And with the image above it can be seen:
• Buy Stop and Sell Limit are placed above the current price.
• Buy Limit and Sell Stop placed below current price.
In addition, there will be 2 more types of commands. Those are Buy Stop Limit and Sell Stop Limit.

Buy Stop Limit and Sell Stop Limit, how to understand it?

To make it easier to imagine these two "long-winded" commands, change Trinh's sentence from:
"If BTC price goes up to \$7000, I'm sure it will go up again so I will buy" (Buy Stop)
into another sentence
"If BTC price goes to \$7000, I'm sure it will go up again. But I won't buy at \$7000, because I know it will come back a bit, I wait for it to get back to \$6800 then I buy." (Buy Stop Limit)

At this point, there will be 2 price points to pay attention to: \$7000 and \$6800.

\$7000 will be the order trigger price. Once the order is triggered, it will place a pending buy order at \$6800.

The Sell Stop Limit order is the opposite of the Buy Stop Limit order.