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:

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
);

See the StopMarketOrder API Reference for further details.

Related guides

• 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.