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Encyclopedia DeFi · Entry 335

Stop-market and stop-limit orders: trigger price is not execution price

AI-assisted research · separate automated verificationCorrections

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DeFi
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2 cited records
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Key facts

Key facts for Stop-market and stop-limit orders: trigger price is not execution price
FactDetailSource
TriggerThe activation condition is distinct from the resulting order.[1]
Stop-limitAfter triggering, its price bound still applies.[1]
Price sourcedYdX documents oracle/last-price trigger rules with safeguards.[1]
01

A gap can cross both prices

Imagine a long position with a sell stop triggered at 90 B and a limit of 89 B. If the next available bids are 87 B, the stop-limit has activated but cannot sell into those bids at its stated limit. A stop-market would seek immediate matching, subject to venue limits, and could execute below 90.

The numbers are illustrative. Neither instruction promises that losses stop at exactly the trigger value.

02

Know which price can trigger it

A chart may show last trade while an order uses an oracle or another reference. The retrieved dYdX documentation describes specific oracle/last-price logic and clamping. A brief displayed price crossing is therefore not enough to diagnose a missed trigger without checking the actual rules.

03

Activation is not completion

Liquidity, execution policy and partial fills determine how much exposure closes. Reduce-only can help prevent an outdated closing order from reversing a position, but it does not guarantee a fill. Record trigger status, filled size and remaining position separately.

Direct answers

Questions people ask

Which order guarantees both my stop price and an immediate exit?

Neither does. A price limit can prevent a worse fill but also prevent execution; a market-style instruction remains dependent on available liquidity and venue protections.

Inspect the evidence

The answer and key facts have stable claim links. These records retain the scope and qualification when reused.

A stop-market order activates a market-style order when its trigger condition is met. A stop-limit activates a limit order instead. The trigger is not a guaranteed fill price: market-style execution can be worse, while a limit can remain unfilled. The trigger price source and execution protections depend on the venue.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.

Link to this claim
Trigger: The activation condition is distinct from the resulting order.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.

Link to this claim
Stop-limit: After triggering, its price bound still applies.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.

Link to this claim
Price source: dYdX documents oracle/last-price trigger rules with safeguards.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.

Link to this claim
Revision history
  1. — First publication after primary-source research and separate automated verification.

Source register

Sources and references

Retrieval dates and locators are recorded individually.
  1. Perpetual order types on dYdX ChaindYdX Operations Services

    Order-type semantics and dYdX-specific constraints.

    Locator: Market; Limit; Stop; Take Profit; execution policies · Version / scope: Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded · Retrieved: 2026-10-02T18:53:20.714ZOpen source
  2. Reduce Only OrderdYdX Operations Services

    Version-scoped IOC requirement and reduction behavior.

    Locator: Requirements; How it works · Version / scope: Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded · Retrieved: 2026-10-02T18:53:20.744ZOpen source
How this article was made

Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.

Editorial method and corrections

Degrees of Satoshi editorial project. “Stop-market and stop-limit orders: trigger price is not execution price.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stop-loss-vs-stop-limit/