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Stop-Market Orders, Liquidation Estimates, Position Closing, and ROI

Article Deribit Insights

Summary

This platform update explains four tools for trading crypto derivatives. Stop-market orders trigger a market order when a selected price is reached, while stop-limit orders trigger a limit order that may not fill completely. For either order type, traders can choose a mark-price or index-price trigger; the document notes that the index may move faster during volatile conditions.

The update also describes an estimated liquidation price shown before order execution, buttons to close positions at market or at a chosen limit price, and a live return-on-investment display. ROI is defined as profit or loss divided by initial margin. These interface features can help traders assess exposure and manage exits, but the article gives no testing or evidence about execution quality, slippage, liquidation accuracy, or the suitability of any order type. The descriptions reflect the platform functionality at the time of publication.

Key ideas

  • A stop-market order converts a triggered stop into a market order, while a stop-limit order may remain unfilled.
  • Stop triggers can use either the mark price or the index, which may behave differently during volatility.
  • An estimated liquidation price can show projected risk before a trade is placed.
  • Positions can be closed at market or with a limit order.
  • The platform calculates ROI as profit or loss relative to initial margin and updates it in real time.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.