4 Types of crypto trading orders

4 Types of crypto trading orders

If you want to invest in crypto, regardless of your level of experience, it is important that you  understand the types of trading orders.

Order types are instructions given to a cryptocurrency trade that specify how you want to buy or sell cryptocurrencies. These order types dictate the conditions under which your trade will be executed.

In the Tradesilvania investment platform you can buy or sell your digital assets using the following 4 order types: market order, limit order, fill or kill order, stop-loss order. 

  1. Crypto Spot Market Order

The spot market order is the most commonly used order type for buying or selling cryptocurrencies and involves immediate execution of the trade at the best market price. Due to volatile values, the volumes of cryptocurrencies displayed for buying or selling in the spot market are estimates - the maximum price variation can be 0.5-1% depending on the volume of transactions and their size.

  1. Crypto Order Limit

It is executed when the price specified by the client is reached. Reaching the limit price does not guarantee an immediate execution of the limit order, as there may be other orders with approximately the same limit price, but which have priority. If the price entered is lower than the Market price, the order can be executed at the value entered by the client.

  1. Crypto Order Fill or Kill (FoK)

The fill or kill order implies immediate execution of the entire quantity of a transaction or its cancellation if the price set by the client cannot be reached. Between the time a fill or kill order is placed on the platform and its execution on the market, there may be a very small time difference, which affects the value of the traded goods. Fill or kill order slippage is the price difference that can occur between the time an order is placed and its actual execution. Tradesilvania clients have the possibility to enter exactly what is the accepted slippage for the execution of a fill or kill order.

  1. Crypto Stop-Loss Order

The Stop-loss crypto trading order type is mainly used to limit potential losses in case of sudden price fluctuations. The Stop-Loss order allows you to set values for entering or exiting the market.

  • Buy with Stop-Loss: The transaction is processed if the price exceeds the value specified by the client. 
  • Selling with Stop-Loss: The transaction is processed if the price falls below the value specified by the client.

When the stop-loss price condition is met, the order is executed as a Market order type, subject to possible delays, including price variations.

If you understand these 4 order types: market order, limit order, fill or kill order and stop-loss order, you will be able to make the best decisions regarding your investments on Tradesilvania.com.

Choose the right order type for your strategy and start investing smart in the world of cryptocurrencies!