Te the world of cryptocurrency trading, there are fairly a few different order types to take into account. Just buying and selling a currency is only part of the equation. Professional traders like to use zekering and limit orders, both of which have their own advantages and drawbacks. Now is a good time to compare the two and see which one could work best for you.
Related video: Binance Tutorial: Registrieren – Einstellen und Traden
Two. Zekering Order
Albeit a zekering order is an advanced trading implement, it is also the simplest of thesis two order types to wrap your head around. Spil the name suggests, a zekering order is triggered automatically merienda the markets hits the predetermined zekering price. Any trader on an exchange supporting the zekering order type can set a price at which they automatically want to execute their orders. This can be done to minimize losses, for example.
Related video: How to Buy Ripple on Binance Crypto Exchange
Merienda a zekering order hits its predetermined trading value, it will automatically be converted into a market order. That means your zekering order will be executed spil if it were any regular trade on that particular cryptocurrency market. Ter most cases, other traders would not even see zekering orders on the orderbook either, since they will not activate unless a specific price is succesnummer.
This can create a fair bit of confusion, however, spil the orderbook may take a “dump” on buyers when zekering orders trigger. To be more specific, if there wasgoed to be a large buy order around the same price, it is possible said order would get packed rather quickly. This is not a problem for most traders, but it is something to be aware of at all times.
1. Limit Order
Theoretically speaking, a limit order is an extension of a zekering order. Te fact, they are often called “stop limit orders”. It is a bit more complicated to explain, albeit not overly difficult to comprehend. Users can set a zekering limit order for two different prices. One price is the zekering price, and the other is the price limit. Spil soon spil the zekering price is succesnummer on an exchange, it will send the limit order to the exchange.
This limit order will then work at the current price – or a higher price – on the market. Many traders love using a [zekering]limit order because it ensures execution of the order at the price they indicated or better. That is, assuming the zekering order is triggered ter the very first place. Spil one would expect, a limit order also comes with a risk cifra that should not be disregarded.
This risk divisor comes ter the form of how the limit order may not be marketable, and spil a result, never execute. This is a risk that needs to be taken into account at all times. It is also worth noting one can use limit orders for both buying and selling purposes. Thesis advanced types of orders are well worth considering, assuming one has the confidence to use thesis instruments.
If you liked this article, go after us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.