A stop-limit order will be executed at a specified (or potentially better) price after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.
Explanation of SL (stop-limit) mechanics:
Stop price: When the current asset price reaches the given stop price, the stop-limit order is executed to buy or sell the asset at the given limit price or better.
Limit price: The selected (or potentially better) price that the stop-limit order is executed at.
Quantity: The number of assets to buy or sell in the stop-limit order.
For example, the last traded price of BTC is 7,200 USDT. If a user believes that the price will continue surging up if it breaches the resistance at 7,500 USDT, he may place a Stop-Limit with the following parameters:
Stop-Limit: 7,500 USDT
Order price: 7,550 USDT
Volume: 1.5 BTC
Our system will then automatically send a limit order with the above parameters to the order book when the last traded price reaches 7,500 USDT. This would save the user's time from monitoring the market.