The Coinbase Exchange has revealed a new ability for users: stop orders. Stop orders allow customers to buy or sell bitcoin at a specified price, with the aim of helping traders protect profits, limit losses, and possibly initiate new positions when the market breaks out.
Coinbase described the process in the following steps for customers on the exchange. Begin by going to the orders panel and selecting the STOP tab. From there, there is the option to buy or sell stop orders. Next users will need to enter the amount of bitcoin o buy or sell along with the price at which the order is required to trigger. Finally, the “Place Buy Stop” or “Place Sell Stop” will complee the process.
Once submitted, stop orders are immediately visible on the open orders panel and can be cancelled at will by clicking the “X” in the status column. Customers who use programmatic or automated trading strategies can also place stop orders via the STOP ORDER endpoint in the Coinbase Exchange API.