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  "id": "stop-loss-vs-stop-limit",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/stop-loss-vs-stop-limit/",
  "collection": "defi",
  "title": "Stop-market and stop-limit orders: trigger price is not execution price",
  "description": "Separate a stop trigger from the order sent after it, and understand the trade-off between price bounds and execution uncertainty.",
  "aliases": [
    "stop loss stop limit crypto difference",
    "stop trigger versus limit price"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "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.",
    "claimId": "stop-loss-vs-stop-limit-quick-answer",
    "sourceIds": [
      "x425-defi-dydx-orders"
    ]
  },
  "keyFacts": [
    {
      "label": "Trigger",
      "value": "The activation condition is distinct from the resulting order.",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ],
      "id": "trigger",
      "claimId": "stop-loss-vs-stop-limit-fact-trigger"
    },
    {
      "label": "Stop-limit",
      "value": "After triggering, its price bound still applies.",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ],
      "id": "stop-limit",
      "claimId": "stop-loss-vs-stop-limit-fact-stop-limit"
    },
    {
      "label": "Price source",
      "value": "dYdX documents oracle/last-price trigger rules with safeguards.",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ],
      "id": "price-source",
      "claimId": "stop-loss-vs-stop-limit-fact-price-source"
    }
  ],
  "prerequisites": [
    "order-book-depth-spread"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "A gap can cross both prices",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "reference",
      "heading": "Know which price can trigger it",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "remaining",
      "heading": "Activation is not completion",
      "sourceIds": [
        "x425-defi-dydx-orders",
        "x425-defi-dydx-reduce"
      ],
      "paragraphs": [
        "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."
      ]
    }
  ],
  "faq": [
    {
      "question": "Which order guarantees both my stop price and an immediate exit?",
      "answer": "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.",
      "sourceIds": [
        "x425-defi-dydx-orders"
      ]
    }
  ],
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      "statement": "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.",
      "sourceIds": [
        "source-a2545baf2d42e7b4"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a2545baf2d42e7b4",
          "locator": "Market; Limit; Stop; Take Profit; execution policies"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX oracle/last-traded trigger and clamping rule; stop activation differs from fill and stop-limit can remain unfilled at87 below89 limit."
        ]
      }
    },
    {
      "id": "stop-loss-vs-stop-limit-fact-trigger",
      "articleSlug": "stop-loss-vs-stop-limit",
      "statement": "Trigger: The activation condition is distinct from the resulting order.",
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        "source-a2545baf2d42e7b4"
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          "sourceId": "source-a2545baf2d42e7b4",
          "locator": "Market; Limit; Stop; Take Profit; execution policies"
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      ],
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        "notes": [
          "Checked dYdX oracle/last-traded trigger and clamping rule; stop activation differs from fill and stop-limit can remain unfilled at87 below89 limit."
        ]
      }
    },
    {
      "id": "stop-loss-vs-stop-limit-fact-stop-limit",
      "articleSlug": "stop-loss-vs-stop-limit",
      "statement": "Stop-limit: After triggering, its price bound still applies.",
      "sourceIds": [
        "source-a2545baf2d42e7b4"
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      "sourceLocators": [
        {
          "sourceId": "source-a2545baf2d42e7b4",
          "locator": "Market; Limit; Stop; Take Profit; execution policies"
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        "notes": [
          "Checked dYdX oracle/last-traded trigger and clamping rule; stop activation differs from fill and stop-limit can remain unfilled at87 below89 limit."
        ]
      }
    },
    {
      "id": "stop-loss-vs-stop-limit-fact-price-source",
      "articleSlug": "stop-loss-vs-stop-limit",
      "statement": "Price source: dYdX documents oracle/last-price trigger rules with safeguards.",
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          "locator": "Market; Limit; Stop; Take Profit; execution policies"
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        "notes": [
          "Checked dYdX oracle/last-traded trigger and clamping rule; stop activation differs from fill and stop-limit can remain unfilled at87 below89 limit."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-dydx-orders",
      "label": "Perpetual order types on dYdX Chain",
      "publisher": "dYdX Operations Services",
      "url": "https://help.dydx.trade/en/articles/166981-perpetual-order-types-on-dydx-chain",
      "locator": "Market; Limit; Stop; Take Profit; execution policies",
      "note": "Order-type semantics and dYdX-specific constraints.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:20.714Z",
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      "recordId": "source-a2545baf2d42e7b4"
    },
    {
      "id": "x425-defi-dydx-reduce",
      "label": "Reduce Only Order",
      "publisher": "dYdX Operations Services",
      "url": "https://help.dydx.trade/en/articles/166978-reduce-only-order",
      "locator": "Requirements; How it works",
      "note": "Version-scoped IOC requirement and reduction behavior.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:20.744Z",
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  ],
  "related": {
    "articles": [
      "take-profit-orders",
      "reduce-only-orders",
      "mark-index-last-price"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "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/"
}