As you might already know, trading cryptocurrencies represents executing different trading orders. In this mini guide, we walk you through the most important trading orders you will need to master when entering the crypto market.
But, if all these seem pretty complicated and time-consuming for you, never mind. You can always rely on automated trading using auto trading software. Just make sure to choose the reliable one, such as Biticodes, do proper research, and check out the opinions on the various trading forums.
So, let’s look at the most common trading orders in the cryptocurrency trading process.
The “market” Order
It allows you to buy or sell a desired amount of cryptocurrency with immediate execution. The downside is that the trader has no control over the price with this type of order.
It allows you to buy or sell a desired amount of cryptocurrencies at a fixed price.
In the event of purchase, the order will only be executed if the price of the cryptocurrency drops to the level of, or below, the limit transmitted.
In the event of a sale: The order will only be executed if the cryptocurrency price rises to the level or above the limit transmitted.
The “trigger range” Order
It is similar to the “stop-loss” order. However, it allows you to add a price limit to the purchase or sale of the cryptocurrency. You, therefore, indicate a trigger threshold and a price limit (the limit will be higher in the event of a purchase and lower in the event of a sale).
In case of purchase: If the cryptocurrency price exceeds the defined threshold (the chosen threshold must be above the last price), the order will become a “limit” order at the price you have set.
In the event of a sale: If the cryptocurrency price drops below the defined threshold (the chosen threshold must be below the last price), the order will become a “limit” order at the price you have set.
Basically, if you use a “trigger range” order on Bitcoin when the price is at $40,000:
In case of purchase: you define, for example, the threshold at $42,000 and the limit at $43,000. It means that if the price of BTC crosses $42,000, your limit order will be triggered, and the desired amount will be bought as long as the price of BTC does not cross $43,000.
In the event of a sale: for example, you define the threshold at $38,000 and the limit at $37,000. It means that if the price of BTC crosses $38,000, your limit order will be triggered, and the desired amount will be sold as long as the price of BTC does not cross $37,000.
The “trigger threshold” Order
It enables buying and selling a desired amount of cryptocurrencies from a defined threshold.
In case of purchase: The order will become a “market” order if the cryptocurrency’s price exceeds the defined threshold (the chosen threshold must be above the last price).
In the event of a sale: The order will become a “market” order if the cryptocurrency price drops below the defined threshold (the chosen threshold must be below the last price).
