How to Trade on Binance- Cryptocurrency Exchange
Binance is one of the fastest growing cryptocurrency exchange ter the world. Binance is known for its low trading fees(0.1%) spil well spil quick transaction processing, its technology is capable of processing 1.Four million orders each 2nd, making it a world leader ter potential exchange volume.
Binance provides plasticity of trading ter different conversion pairs such spil BNB,ETH,BTC and USDT.
Market Order (BUY) – Te the Market Order option, your ‘buy’ order will be executed against the lowest ask price order available te the market at that point for that given quantity.
Te the above situation, if you place a ‘buy’ Market order of 1ETH, then you will acquire
1) 0.134ETH at 0.105225BTC/ETH
Two) 0.524ETH at 0.105226BTC/ETH, and the remaining
Three) 0.342ETH at 0.105227BTC/ETH, averaging out the cost to 0.105226BTC/ETH
Market Order (SELL) – Te the Marker Order option, your ‘sell’ order will be executed against the highest bid price order available te the market at that point for that given quantity.
Ter the above situation, if you place a ‘Sell’ Market order of 1ETH, then your ETH will be sold spil following:
1) 0.665ETH at 0.105067BTC/ETH, and the remaining
Two) 0.335ETH at 0.105062BTC/ETH, averaging out the selling price to .0105065BTC/ETH
Market order option is the fastest method for trade execution. It is beneficial for participants who project to hold the security for long and few points ter the price (up or down) doesn’t make a large influence.
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This is the least dearest contraption for day traders spil it provides little or no control on the price at which trades will be executed and few points te the price can have a ample effect.
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A limit order te Binance is an order that sets the maximum or ondergrens at which you are willing to buy or sell a particular currency.
For Example, te the above situation last traded price vanaf 1 ETH is 0.104453BTC, wij can either go forward placing a market order spil wij discussed ter the previous section or wij can by hand input a price spil vanaf our expectation and understanding of the market on the onderstel of previous trends and technical analysis of ETH.
Wij can place a Limit ‘Buy’ order at 0.10300BTC/ETH (A) which is lower than the last traded price and market price. The order will be executed when it will encounter a matching or better ask (sell) order for the given quantity.
Similarly, wij can place a Limit ‘Sell’ order at 0.105157BTC/ETH (B) which is higher than the last traded price and market price. The order will be executed when it will encounter a matching or better bid (buy) order for the given quantity.
The order might not be instantaneously executed, till then it will be shown ter the Open order tabulator where it can be cancelled for a fresh order.
Unlike Market order where wij have no control overheen the price at which the order will be executed, Limit order ensures that wij pay/receive exactly the same amount or better that wij stated and that the order will not be executed until it finds a matching/better order.
Zekering Limit Order
Te a volatile market like Cryptocurrency, a unexpected decrease te prices is common. This might eventually lead to loss of initial hacienda you waterput te.
To ensure the safety of the initial hacienda or to book a ondergrens amount a profit, Zekering limit option is a bliss to the investors.
A Zekering limit order or better known spil Stop-Loss ter the Stock Market is an invaluable contraption to escape market uncertainties. Binance recently incorporated this function.
Consider the above situation, the last traded price is 0.104461BTC/ETH.
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‘Stop’ will be the price at which the ‘Limit’ function will be executed i.e If the price of ETH everzwijn falls to .0101BTC/ETH (A) , the ‘limit’ function will come into existence.
Ter the above situation, wij set the Limit price spil 0.1BTC/ETH (B). Our order will be executed at a price no less than 0.1BTC/ETH
Wij can set the limit price above/below the ‘Stop’ price spil vanaf our understanding and analysis of the market. This will ensure certainty of profits and renta te a bearish market.
You can read more about Zekering Limit function at – How to use Stop-Limit Function