Within Spot Trading, Cryt provides a variety of order types at your disposal. These order types serve as valuable tools for establishing your trading strategies and executing trades with efficiency.
What is a limit order?
A Limit order is to buy or sell at a specific price or better. Limit orders are not guaranteed to execute.
When the Current Price (A) drops to the buy order's Limit Price (C) or below, the order will execute automatically. The order will be filled immediately if the buying price is above or equal to the current price. Therefore, the buying price of limit orders must be below the current price.
For example:
1. In the given graph, the current price is 2400 (A). If a new buy limit order is placed with a limit price of 1500 (C), the order will only execute once the price drops to 1500 (C) or below.
2. If a buy limit order is placed with a limit price of 3000 (B), which is above the current price, the order will be immediately filled at the prevailing market price. The executed price will be around 2400, not 3000.
What is a market order?
A market order is executed at the current market price as quickly as possible when a user places the market order.
The current price is 2400. If you place a market order, your order will be filled with rival price immediately, it means the average filled price won't be equal to 2400(A), which is supposed to be a bit lower or higher than 2400.
For buy orders, the average filled price might be a bit higher than current price. And for sell orders, the average filled price might be a bit lower than current price.
What is a stop-limit order?
A stop-limit order is an order that has both a trigger price and a limit price. When the trigger price is reached the limit order will be placed on the order book.
Parameter Description:
Trigger price: When the current price reaches the trigger price, the stop-limit order is executed to buy or sell the asset at the limit price or better.
Limit price: When the stop limit order is triggered the limit order will be placed at the limit price.
Amount: After the stop limit order is triggered the amount of the limit order.
Please note that after the market price reaches your limit price, your order will be executed as a limit order. If you set the stop-loss limit too high or the take-profit limit too low, your order may never be filled because the market price cannot reach the limit price you set.
The current price is 2400 (A). The trigger price of the stop limit order can be above the current price such as 3000 (B), or below the current price such as 1500 (C). Once the price goes up to 3000 (B) or drops down to 1500 (C), the stop limit order triggers, and the limit order will be activated automatically.
Note:
· Limit price can be above or below triggering price for both buy and sell orders. For example, trigger price B is able to combine with a lower limit price B1, or a higher limit price B2.
· Limit order is invalid before the trigger price is triggered including when the limit price is reached ahead of the trigger price.
·When the trigger price is reached, it only indicates that a limit order is activated and will be submitted to the market, rather than the limit order being filled immediately. The limit order will execute with its own rules.
Market Order vs Limit Order
Market Order | Limit Order |
Easier to set up as no price is specified | Investor must specify price at which order will trigger |
Will almost always be filled as trade executes as current (market) price | May not get filled if limit order price is not met by market |
Does not have an expiration since it usually fills immediately | Is often accompanied by an expiration date in which the order closes if not yet filled |
May be more suitable for stable investments | May be more suitable for volatile, unpredictable investments |