How To Use Limit and Stop Orders?

During cryptocurrency trading, you can use three different types of orders to buy and sell Bitcoin or other cryptocurrencies. These order types are: Market, Limit and Stop Limit orders.

• Market Order

In your cryptocurrency trading, a market order allows you to quickly buy or sell at the current market price. With this order type, you don't need to specify a buying or selling price; your transaction executes immediately. Market orders match with the most favorable orders available in the order book. If your order size exceeds the best available order, it continues to match with subsequent best-priced orders.

• Limit Order

If you prefer to determine the price during cryptocurrency trading, you can choose the limit order type. When placing a limit order, you specify the amount you want to buy or sell and the price you are willing to pay for the transaction. Using the advanced trading screen, for a buy order, after setting your desired price, you can automatically calculate the amount of cryptocurrency you can buy by entering the total amount you want to spend. For sell orders, when you enter the total amount you want to receive, the amount of cryptocurrency you need to sell at that price is automatically calculated.

When placing a limit buy order, if you specify a price equal to or higher than the best buy price in the order book, your commission rate is calculated based on the buyer commission rates. If you place a buy order at a price lower than the market price, maker commission rates are applied.

When placing a limit sell order, if you specify a price equal to or lower than the best sell price in the order book, the commission you pay is calculated based on the buyer commission rates. If you place a sell order at a higher price than the market price, maker commission rates are used for calculation.

• Stop Limit Order

Stop limit orders aim to activate a limit order at your chosen price level when the market price reaches the triggering point you set. If you anticipate the market price will decrease or want to sell when the market price falls below a certain level, you can use a stop limit sell order. Conversely, if you want to make a purchase when the market price rapidly increases and take advantage of this opportunity, you can use a stop limit buy order for your limit buy order to be automatically placed when the market price reaches the trigger level.