If you offer a stop loss would you not simply put the coins for sale at the stop loss? How can they end up not being sold then?
Example:
1. imagine you have 10k BTC
2. set stop loss @ $130
=> there is not buyer who can buy your coins
The only way you could do it would be to have the script / engine monitor the bid depth and dump accordingly and in advance as the price falls.
If someone else dumps a large amount of Bitcoin - something like 5-10K moving the price straight past your stop loss trigger point then you would be out of luck and could end up missing your sell point by a large amount due to the low liquidity and huge swings in this market.
Yes, in such a case, you would get much lower than 130.
A large stop loss on real exchanges is what the day-traders and bots are sort of hoping to trigger... if they can sell into the stop price, and trigger the big sell, they can then buy after the stop-loss triggered market-order selling is done (and any other stops that such selling may trigger) and then get cheap coins.
Thin markets are decent reasons not to have stop loss orders, but offering the option for folks to do it anyway may be in the best interests of the exchange from a pure trade-revenue perspective. If they were trading their own exchange, then it would REALLY be in their best interests, though that would be inviting the SEC in a away that would best be avoided...
