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Stop-Market

docs/concepts/orders/stop_market.md

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Stop-Market

FIX OrdType <40>=3 (Stop)

A Stop-Market order is a conditional order which once triggered, will immediately place a Market order. This order type is often used as a stop-loss to limit losses, either as a SELL order against LONG positions, or as a BUY order against SHORT positions.

Use cases

Use a Stop-Market order when you need execution certainty once a price level is breached, such as a protective stop-loss or a breakout entry. Because it converts to a Market order on trigger, the position is almost always opened or closed. The tradeoff is that the trigger price is not the fill price: in fast or gapping markets the fill can land well beyond the stop, so it trades price certainty for execution certainty (the opposite of a Stop-Limit).

Example

In the following example we create a Stop-Market order on the Binance Spot/Margin exchange to SELL 1 BTC at a trigger price of 100,000 USDT, active until further notice:

rust
use nautilus_model::{
    enums::{OrderSide, TimeInForce, TriggerType},
    identifiers::InstrumentId,
    types::{Price, Quantity},
};

let order = self.core.order_factory().stop_market(
    InstrumentId::from("BTCUSDT.BINANCE"),
    OrderSide::Sell,
    Quantity::from(1),
    Price::from("100000"),
    Some(TriggerType::LastPrice), // optional (default DEFAULT)
    Some(TimeInForce::Gtc),       // optional (default GTC)
    None,                         // expire_time
    Some(false),                  // reduce_only (default false)
    None,                         // quote_quantity (default false)
    None,                         // display_qty
    None,                         // emulation_trigger
    None,                         // trigger_instrument_id
    None,                         // exec_algorithm_id
    None,                         // exec_algorithm_params
    None,                         // tags
    None,                         // client_order_id
);
python
from nautilus_trader.model.enums import OrderSide
from nautilus_trader.model.enums import TimeInForce
from nautilus_trader.model.enums import TriggerType
from nautilus_trader.model import InstrumentId
from nautilus_trader.model import Price
from nautilus_trader.model import Quantity
from nautilus_trader.model.orders import StopMarketOrder

order: StopMarketOrder = self.order_factory.stop_market(
    instrument_id=InstrumentId.from_str("BTCUSDT.BINANCE"),
    order_side=OrderSide.SELL,
    quantity=Quantity.from_int(1),
    trigger_price=Price.from_int(100_000),
    trigger_type=TriggerType.LAST_PRICE,  # <-- optional (default DEFAULT)
    time_in_force=TimeInForce.GTC,  # <-- optional (default GTC)
    expire_time=None,  # <-- optional (default None)
    reduce_only=False,  # <-- optional (default False)
    tags=None,  # <-- optional (default None)
)

See the StopMarketOrder API Reference for further details.

  • Orders - Trigger types and other execution instructions.
  • Emulated orders - Emulating conditional orders on venues without native support.
  • Execution - How orders reach the venue and fills are handled.