Sometimes there are price gaps in crypto; FTX.com uses stop limits to prevent crazy prints. Let's say a user was short 1 BTC, and had a 1 BTC buy stop loss at 9600. BTC then jumps straight from 9590 to 9900. Should the stop loss:
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A: It doesn't say if this was a market or limit stop.
B: Are you talking about placing a market order in the order queue, and then pulling it out of the queue?
C: How are you that illiquid to encounter $300 of slippage?
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We're not! But on some of the less liquid coins, during large market moves, you can see a version of this
FYI deribit already has this, where they turn a market order into a limit order at the edge of their allowable execution range.
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