Cryptocurrency exchange sites have made trading digital assets easier since there is no third party or central authority that controls or interferes with the transactions. Therefore, you can trade on various exchange platforms easily.
In crypto exchanges, there are usually different order types users can choose from when purchasing cryptocurrencies. However, not all are familiar with this information and how they work. Are you curious to know more? Read this article now and kickstart your digital asset trading here at Casino Days!
What are the different crypto order types?
Buyers and sellers of cryptocurrencies may take advantage of a wide range of order types that give them a great deal of control of how and when they purchase or sell their digital tokens.
If you’re into trading, remember these order types are important in making informed decisions. Learn the four trading fundamentals may be used to buy or sell most cryptocurrencies below:
This type of order allows traders to buy or sell at the best available price in the market at the time of purchase. However, the amount you traded might not appear right away in the order book since it takes time. When describing a successful market transaction, most traders use the term ‘the order has been filled’.
Limit order allows users to set their own price to buy or sell their cryptocurrencies. Once the market meets the limit of price you indicated, then the transaction will be executed. On the other hand, if the price isn’t met, then the order won’t be processed.
Keep in mind that limit orders enable traders to have more control over their trades and decrease their risk while avoiding continually keeping an eye on the market.
A stop-order allows users to specify the quantity of tokens they want to sell at a particular price. In order to execute this transaction, there has to be a trigger amount that will exceed the current price on the market. This ensures that traders can sell or buy their tokens at their desired price point and lessen their losses.
In essence, a stop-loss limit is an order executed at a certain price with a broker. Usually, this type ensures that loss is minimised by ensuring that a limit is established. For example, if you’re going to buy Bitcoin for $30, your stop-loss order will enter for $28 so that in the event of a price drop, your asset can be purchased at the current value.
Trailing stop order
An investor’s gains are protected when the price rises in their favour by using a trailing stop, which allows the transaction to remain open and continue to reap the benefits. Trailing stop orders are more flexible than stop-loss orders since they do not need manual recalculation every time the stock’s price changes.
When an asset is acquired, a bracket order may be used to place two sell orders simultaneously. It is less complicated and time-consuming when entry and risk management are handled as part of the same process.
These orders are very beneficial to customers since they execute all three purposes simultaneously: entry, profit, and stop loss. And what’s great about this type of order is that customers don’t have to keep track of locations or costs.
Different time in force in order types
When talking about order types, it’s essential to understand the concept of time in force. These parameters dictate the conditions under which a transaction will expire and help you determine which one works best for you. Learn more about them below:
Good ‘til cancelled (GTC)
A good ‘til cancelled or GTC investment order is a buy or sell order for crypto at a fixed price until the investor cancels the order or the transaction is carried out.
GTC orders minimise the need for investors to monitor the crypto price constantly and instead enable them to acquire and sell at specific price points while holding them for a specified amount of time.
Immediate or cancel (IOC)
Essentially, an immediate or cancel order is a past transaction of securities that gets forfeited before it gets processed on an exchange. This type of order can be done by investors so long as the transaction has not yet been filled.
Usually, this can be done through phone or online platforms if users want to
Fill or kill (FOK)
Usually, a fill or kill or FOK order is done by an investor who wants to immediately forfeit an existing order. For example, if you made an order on the exchange and you want to cancel it right away, an FOK is the best way to do it. Most of the time, fill or kill is done by traders who are handling large amounts of tokens. Either the purchased amount is filled immediately or cancelled entirely.
All or None (AON)
Similar to Fill or Kill, an All or None is an order that has to be executed right away. However, the only difference between the two is that this type of order takes time to be processed upon request.
An open order in crypto trading means an investor can execute a market or limit order once the market re-opens. However, any transaction not a part within the timeframe will not be processed.
Start your crypto journey with Casino Days India!
Like everything else in life, cryptocurrency investment takes time and effort before you see the fruits of your venture. Keep in mind that before you begin investing, it’s important to equip yourself with the right information to help you make well-informed decisions. With these new-found knowledge we shared with you, you’re now ready to begin investing in crypto.
Kickstart your crypto trading journey here in Casino Days India and grow your investments when you read our tips and strategies!