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can anybody explain me the purpose of a stop limit order for buying crypto

Binance

Cryptocoins Exchanges / Binance 73 Views

Let's say that I need to buy eth at the worth of 1100 USD.

To do this I can set up an open "limit order": if eth reach 1100 $ Binance will buy me mechanically a sure quantity of eth. This is clear to me.

In a "stop limit order" as an alternative I've to arrange a "stop" worth that activate a "limit order". I don't get what's the purpose of the"cease worth". As an example it could possibly be: activate a limit order worth (=purchase eth at 1100 USD) at a "stop worth" of 1200$. What's the purpose of this? Why not simply set up a restrict order?

Thank you

submitted by /u/mmaatt78
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