A stop-buy order is designed to help traders enter a position during upward momentum. Instead of buying an asset immediately, you set a trigger price above the current market price. Once the stop price is reached, the order converts into a market order and executes at the best available price.
This strategy is commonly used when traders believe an asset will continue to rise once it breaks through a certain resistance level. Unlike a take profit order—which is used to sell and lock in gains—a stop-buy order is used to buy into strength.
Example
Suppose MIN is trading at 0.0469 ADA. You believe that if it breaks 0.0494 ADA, the trend will continue upward. You set a stop-buy order at 0.0494 ADA. Once the price reaches this level, the order executes, and you purchase MIN automatically at the best available market price.
Steps to Place a Stop-Buy Order
- Choose Stop
From the trading screen, select “Stop” as your order type. - Specify the Buy Amount
Enter the asset you wish to purchase and the amount (e.g., buy MIN with ADA). - Set the Stop Price
Define the trigger price at which the buy should occur.
Example: Buy MIN when it reaches 0.0494 ADA. - Set Expiry
Choose an expiry time for the order. If the price doesn’t hit your stop price before expiry, your ADA remains in your wallet. - Place Order and Sign
Confirm the trade, sign in your wallet, and submit it on-chain. The order will execute automatically when conditions are met.
Stop-Buy vs. Take Profit
- Stop-Buy Order: Enters a new position once the price rises to a chosen level.
- Take Profit Order: Exits an existing position by selling once the price reaches a desired profit target.
Both can be used together as part of a risk/reward strategy:
- Stop-Loss to protect downside
- Take Profit to lock in gains
- Stop-Buy to catch upward trends
