Limit vs. Stop GDAX: What are the main differences?

limit vs stop gdax

As every investor knows, GDAX is a great market for crypto trading. Even if you are an experienced investor, you do need to make sure that you figure out exactly where and how much you want to invest in increasing your wealth and achieving the goal you already have in mind.

With that being said, you can opt for a limit or stop orders on GDAX, and there will be some differences you will need to consider. However, as long as you adapt and adjust to the process at your own pace, your investment won’t be at stake.

It might sound easy, but you do need to take your time if you want to place a limit or a stop GDAX order. You have to fully understand what the main differences between limit and stop GDAX orders are before you begin trading crypto. Once you do that, nothing will stand in your way.

So, let’s review what a limit GDAX order is and why crypto traders often chose it.

What is a Limit GDAX Order?
limit gdax orders

The Limit GDAX is an order that you place to buy or even sell a stock at a specific price. You can set the limit order, and then you will automatically buy or sell at a particular price.

However, you are unable to set a plain limit above the market price since a better price is already there. Also, you won’t be able to sell under the market price because there are better prices.

But what are the advantages and disadvantages of a limit GDAX order?

Advantages of Limit GDAX Orders

  • The Limit GDAX order is valid until you cancel it, and it will work for a very long time until you stop the order. So you can have and keep the limit GDAX order for as long as you think it is a smart move.
  • You can set time, and your order will remain placed until the time runs out, which makes the limit GDAX order more efficient, and it encourages you to invest without having to worry that much.
  • You also have the advantage of placing an order or cancel it right away if the order was not filled adequately.
  • There’s immunity to slippage. You have the opportunity to get amazing results and truly focus on a great experience without having to worry about significant challenges or issues that might occur.
  • You get to stick to a certain amount of buys and sells as you can limit purchases all the time.

Disadvantages of Limit GDAX Orders

  • There are fees for Limit GDAX orders, and this can become rather costly most of the time, which is why you need to tackle this correctly.
  • You have multiple options, and you need to go through all of them to make this work correctly. Otherwise, you might lose your investment.
  • Some limit orders can be partially filled, and that will lead to some strange situations.

Investors often chose to make limit GDAX orders, as this way, they can buy or sell a coin at their specified limit price. However, every limit GDAX order requires a buyer that is prepared and ready to buy at your specified limit price. Without a buyer, investors might be unable to sell.


After understanding what limit GDAX orders are, it’s time to learn more about the stop GDAX orders.

What is a Stop GDAX Order?stop gdax order

Stop GDAX orders are also buy and sell orders, but the difference here is that you make the Stop GDAX order once the market price reaches a specified stop price. Once the stop price is reached, stop orders become market orders.

This order type allows investors to specify an amount that they want to sell or buy at — making it easy for traders to protect their profits and limit losses.

So, what other benefits does a Stop GDAX order have, and why experienced investors go for this type of order?

Advantages of Stop GDAX Orders

  • You only get to buy at the price you want.
  • It’s easier to make the most out of your money, as you buy at the best price for the market.
  • An easy exit/enter strategy with low risk makes stop GDAX orders precious for the investors.
  • A Stop GDAX order is only activated at a certain point that you have chosen.
  • Stop GDAX orders allow investors to limit their losses and protect their profits.

Disadvantages of Stop GDAX Orders

  • It can take a little while until the market reaches your price.
  • The Stop GDAX orders can experience slippage.
  • You will be charged variable fees.

Now that I’ve walked you through the main advantages and disadvantages of limit and stop GDAX orders, I think it’s time to review the main differences between both.

Limit vs. Stop GDAX: What Are The Main Differences?

Both the Limit and the Stop GDAX orders have their advantages and disadvantages. The GDAX limit order is visible to the market, and it will instruct the broker to fill the order at a specified price or better.

On the other hand, the Stop GDAX order is not visible to the market, and the limit gets activated only at the stop price. There are no risks of partial or no fills; however, with the stop GDAX order, you can expect the order filled at a lower price than presumed. That’s because you don’t always get to see the stop price.


As you can see, limit and stop GDAX orders are different, and both beginners and experienced investors need to study the market movement actively to figure out which strategy and which GDAX order works best for them.

My advice to every new investor that is interested in GDAX orders is to control his emotions and to avoid rushing. Most of the time, people make rash decisions when they let their emotions take the best of them.

So, take your time to study the market because once you know the market, understand what your goal is, and decide what market price you want, it is easy to make the right decision.

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