On CEX.IO BROKER, you can put a stop loss on any order. It allows you to limit the loss on your long and short positions.
Once the stop price is reached, the order becomes a market order and is filled immediately.
Since a market order is created when the specified stop price is reached, there is a possibility that your order may be filled at a lower price than the stop price (for a Sell) or at a higher price (for a Buy). The reason for this is that the markets are highly volatile and prices may change quickly.
On CEX.IO BROKER, you can set the stop price in the order window by ticking the box for Protection Orders in the Trading Terminal and specifying the Stop Loss price of your choice.
Stop Loss on a Short/Sell position
You can use a sell Stop Loss as protection in case the market price goes down. In this case, the stop price is entered below the current market price.
Let's say you open a position to sell 0.1 BTC at $6500. However, you know that the market is volatile and want to limit your possible losses in case the price goes down.
So you set the stop price at $6400. If the market price drops to $6400, your position will be closed, preventing further losses.
In this case, the stop loss on your short position will be triggered when the Ask price reaches the price you specified.
Stop Loss on a Long/Buy position
You can use a buy Stop Loss as protection in case the market price goes up. In this case, the stop price is entered above the current market price.
Let's imagine the current market price is $6500 for 1 BTC. You believe that upon reaching a certain mark, say, $6700, the market will keep on rising. So you want to benefit from this growth and place a buy order beforehand. In this case, you can set a buy stop loss at $6700. Once the market reaches this level, your order will be filled.
Pay attention that in this case, the Stop Loss on your Long position will be triggered when the Bid price reaches the stop price you specified.