Order Types

Order Types

Order Types

There are three types of orders on the Bitexen platform: Limit Order, Market Order and Stop Order. You can use one of these three order types in your trading transactions or more than one order type depending on the amount of available balance in your Bitexen account.
 
1. Market Order
Market order allows you to trade at the best price in the depth chart. If there is not enough depth to cover your buy or sell order at the best price, the rest of your order will be executed at the next best price.
 
Market orders are ideal for making quick buy and sell transactions without wasting time with small price fluctuations.

 2. Limit Order
 A limit order is the type of order you place by specifying the amount and price you want to trade. Your order will not be executed until the limit price in your order reaches the current market price. Therefore, there is no guarantee of realization of your transaction.

3. Stop Order
A Stop Order is a type of order that allows conditional orders to be entered, which are generally used to make less loss or protect profits. In this type of order, the trigger price and the limit price or the market price depending on the type of stop order are included. When the market price reaches the trigger price level, the condition of the order is fulfilled and it is recorded in the order book at the determined limit price or the market price is instantly traded. Stop Order is divided into Stop-Limit Order and Stop-Market Order according to the price at which the order will be placed.
 
Stop - Limit Order
In Stop-Limit Orders given for buying; A limit buy order is created when the lowest selling price in the order book exceeds the trigger price. In this way, the rise can be achieved.
 
In Stop-Limit Orders given for selling, the purpose is to protect ourselves against a possible decline. It can be used to protect profits or avoid too much loss. In this type of order, if the highest buy order in the order book falls below the trigger price, a limit sell order is created.

Stop - Market Order
In Stop-Market Orders given for Buying; A market buy order occurs when the lowest selling price in the order book exceeds the trigger price. The resulting order is executed as a market-taking transaction, according to the sell order prices on the order board. In this way, the rise can be achieved.
 
In Stop-Market Orders given for selling, the purpose is to protect ourselves against a possible decline. It can be used to protect profits or avoid too much loss. In this type of order; If the highest buy order in the order book falls below the trigger price, a market sell order occurs.
 

Using Stop-Limit for Sell Transaction
Let's assume that the Bitcoin price is currently 50,000 USDT and we are buying at 45,000 USDT levels. If we sell now, we will have made a profit. But the chart is on the upside and we want to sell after it goes higher, but the volatile market scares us. In this case, if the highest buy order falls below 50,000 USDT, we enter an order to sell our Bitcoins at 49,000 USDT. The reason we enter the limit value lower than the stop value is because we want to ensure that the trade is executed.
We can also do this to reduce damage. If the market goes bad after making a purchase, we can accept a loss of 10% and enter a Stop-Limit Order at that point. Thus, in case of a continuation of the decline, we will avoid further losses and stand by with our cash assets for new opportunities.

Using Stop-Limit for Buying
Let's say Bitcoin is worth 50,000 USDT and has dropped to these levels from 55,000 USDT prices. We think the chart will turn up, but we want to follow the prices a little more to buy. If we do not have time to follow the prices constantly on the screen, we create a Stop-Limit buy order in order not to miss a sudden rising wave. Our purpose while giving this order; if the lowest sell order exceeds, for example, 53,000 USDT, buying at 54,000 USDT. You can choose this order type in order not to miss sudden rising waves.

What is the Difference Between Stop-Limit Orders and Normal Orders?
The main point that distinguishes Stop-Limit Order from normal orders is; The order does not come to life as soon as you place it, it comes to life after the price is triggered.
NOTE: There is no guarantee of execution of your order. As with every order type, there may be no one who wants to buy or sell at the buying or selling price you entered.

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