Common order types in cryptocurrency trading

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In the past few years, India has witnessed a major revolution in crypto trading. According to an article published by The Mint, India’s cryptocurrency market has grown from US$923 million (April 20) to US$6.6 billion (May 21). Many exchanges that provide crypto trading have already started operations in India. Zebpay is considered one of the best cryptocurrency exchanges in India. Cryptocurrency trading is similar to stock trading. A transaction order is a contract to buy or sell a specific cryptocurrency at a specific price or price range. Let us understand what are the common order types in crypto trading.

Market Order – This is the most common type of order. A market order is an order to buy or sell an asset at the best price when the order is placed. They were executed immediately. For example, if you place a market order to buy Ether worth Rs. 5000, it will be filled immediately and is the best available price on the exchange.

Limit order – Traders who are price sensitive usually use it. Here, people do not buy at market prices. Instead, people set a specific price to buy and sell currencies. For example, if the current market price of Ether is Rs. 1000, you can place an order to buy ether for 975 rupees. Your order will only be executed when the market price of Ether reaches Rs. 975. Similarly, you can place an order to sell Ether at a price of 1050 rupees. Similarly, the order will only be executed when the market price of Ether rises to Rs. 1050. The price may not reach the level you specified, and the order may not be completed yet. However, a limit order ensures that you will not pay more than your specified price or receive a price lower than your specified price.

Stop loss order – These orders are suitable for traders who are very price sensitive and want to protect their investment from excessive market fluctuations. For example, in a buy stop-loss limit order, set a stop-loss price and a limit price. Once the stop price is reached, the limit order will be activated, and the order will be executed only when the currency reaches or exceeds the specified limit price. Similarly, the sell stop limit order is just the opposite. Here, once the currency falls below a certain price, people may wish to sell the currency to minimize losses. Finally, you must also remember the fees associated with trading through online exchanges. Some exchanges also charge membership fees. In the case of Zebpay, members who make transactions at least once a month are exempt from fees. The fee per transaction varies from 0.10% to 0.25%, depending on the type of order.


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