A Stop-Market order will be executed at a best available market price, once a Trigger condition has been met. As for now there is only one trigger condition available - a certain Spot Price.
Explanation of a Stop-Market mechanics:
Price: When the asset spot price reaches the given Trigger price, the Stop-Market order is executed to buy or sell the position contracts at the best available price on a ladder.
Quantity: The quantity of contracts to buy or sell in the stop-market order.
Reduce only: When checked, the conditional order will only be able to close your position, without opening a new one. Without this checkbox the position may change it's direction, e.g. from Long to Short or otherwise. Therefore not checking this box will allow to execute stop-market orders without having an ongoing position.
Important to know: if "Reduce only" is NOT checked for Stop-Market, a margin/balance check will occur. Meaning that if you have placed a Stop-Market to cover losses and a Limit order to close at profit - your Stop-Market may not work if you don't have sufficient balance to support your Limit order margin along with Stop-Market margin.
Cost: Approximate amount of DGTX that has to be on your trading account balance in order to support execution of stop-market or take-profit-market order without checked "Reduce only"
A trader have an open position of 100 contracts short with $53,500 entry price and want to place a take profit on this trade.
His setup would look like following:
Note that we have also checked "Reduce only" checkbox, so our order will not open an opposite order in case we will close full or part of the position manually, before Spot Price will reach our trigger price.
It would be a good practice to use this checkbox for closing orders, to avoid margin checks on triggering.
With the settings like above a market close would be executed once Spot Price of the asset hit $53,000 mark or below.
Please pay attention that it is not recommended to place a stop-market close to liquidation price as it may result unwanted losses due to not sufficient order book offers or change of liquidation price due to funding.
Eventually you will be able to review all of your stop-market orders on a special tab called "Delayed actions", from where you can easily cancel one.