Can somebody explain what a stop loss order is? I don't

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*their

I told you I was a dumbfag

>>2582012
>mfw crash is so fast that SL doesn't even work

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>>2582062
fuck forgot pic

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i dunno about cryptos (no rules or law i assume) but if you have any leveraged long positions and 95% flash crash happens they all go to zero as the broker liquidates

A conditional order to "stop" you from going completely broke while you're in the bathroom.
Google is your friend.

>>2582012
It's when you set a sell order to sell at any price if it hits a certain low. People who had a stop loss below $200 didn't have any buys at that price except for other stop loss orders so when the cascade hit, their sell orders had to keep looking for lower and lower prices until all the eth held with stop loss orders was sold. It's almost guaranteed whoever did the sell knew what would happen and set their own buy order for a shitload at like $1 or $10. Some buyers got eth at $0.10 per.

>>2582012
they lost it from being overleveraged on margin trades and then whales coordinated an eth dump that made all their accounts get liquidated then whales rebought the cheap eth for profit.

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>>2582012
It's just an automatic order.

stop-loss is an order you place for when the price reaches a certain number to minimize losses when you are away.

what happened on gdax is that people had stop-loss orders at really low, pre-mid march prices and shit that they forgot about I guess, and the price hit their stop-loss at that weird flash dip, and sold it for peanuts. pros will look for these opportunities. it's called stop-loss hunting or something and I'm pretty sure it's super illegal as it requires manipulating the market very obviously.

>>2582118
also this but that's not what happened here.

>>2582198
They had a stop loss order, which meant that it would sell at a market price if it is below the threshold..

If they did stop limit then it would have sold at that price but not any lower.

They fucked themselves.

>>2582149
>>2582156
are you sure it was coordinate?

>>2582270
*coordinated

>>2582025
fuck, thats one comfy-ass picture
whats the source?

>>2582270
>>2582285
whales can do shit like that. they were stop loss hunting. no way to know if that is what happened or if it was just an accident. This shit is so unregulated though that I wouldn't be surprised if it was from malicious whales.

>>2582012
Alright so apparently a stop loss is an order which triggers when the last executed trade is <= x. But there stupid thing is that when the order triggers, the asking price becomes the same as the last executed trade. So when it went to 10 cents, the stop losses triggered and people sold ETH for 10 cents. hahahahahahahahaha

I just assumed that a stop loss always lets you choose the ask price, but I guess that's a stop limit.

>>2582358
P sure it's howls moving castle

how could a whale have done this from the genesis block

>>2582012
it stops losses

>>2582437
Yup this. Stop loss will market sell once triggered. Since the buy orders were filled down to 0, they ended up getting sold off for pennies, even if they set a stop loss at 300. A stop limit is different than a stop loss and most people dont realize since theyre used to markets being more stable.

>>2583731
How can people have 10000s of dollars of ETH and realize such an obvious risk? And I thought I was stupid

>>2582012

getting called on margin is bigger culprit than stoploss

stoploss: people set it to sell coins at certain prices.

margin: say you have 1000 dollars. you then borrow 9000 dollars and buy coins with it. if coins go down in value to where ur purchased coins are valued at 9000 total(remember you paid 10k for them), then they will force u to liquidate to guarantee the lender doesnt lose money.

>>2582012

a stop loss order is what retards use to lose their money

if your margin account can be liquidated by a flash crash of any single coin, you are doing it wrong.