Order Types on Bitkub Exchange

Modified on Mon, 10 Jun 2024 at 01:22 PM

Limit Order


Limit Order is an option for a buy/sell trade that enables users to set the price per coin by themselves. Users can enter the amount of coin/fiat to spend from the account balance or the amount of coin/fiat they wish to acquire in the toolbox as shown in the picture.

  • For a limit buy order, the order will be matched when the market price equals the set limit price or lower.
  • For a limit sell order, the order will be matched when the market price equals the set limit price or higher.


Example

ETH was worth about 33,000 THB in the Bitkub market at that time. Mr. A wanted to buy ETH at a lower price and expected that the coin's price would drop to 30,000 THB. He created a limit order of 30,000 THB/ETH. Later, the price of ETH dropped to 30,000 or lower, the system then would match the sell order in the market to Mr. A’s limit buy order immediately.


After Mr. A received 1 ETH for 30,000 THB, he thought that the price of ETH would go up and wanted to sell it to make a profit. Therefore, he created a limit order to sell 1 ETH coin at 34,000 THB/coin. A few days later, the price of ETH rose to 34,000 THB and more. The system then started matching Mr. A’s limit sell order immediately.


From time to time, you may find that your order has more than one match because the buy /sell volume in the market at the set price is insufficient to meet your order quantity. You can check the waiting list of your buy/sell orders at "MY OPEN ORDERS".


The orders that you made will disappear after you cancel them or the orders are matched. The system does not set a time limit or cancel orders automatically.

 

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To prevent inappropriate orders, our system has a limitation for limit orders as follows.

  • For limit buy orders: the buying price that you set cannot be higher than 20% of the current (market) price.
  • For limit sell orders: the selling price that you set cannot be lower than 20% of the current (market) price.

If the price for your limit order is inappropriate according to the conditions above, the system will show the following message.


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Market Order


Market Order is an option for a buy/sell trade that enables users to auto-choose the best available price rate from the market while users only have to enter their spending amount of coin/fiat from the user's balance.


After submission, the system will automatically choose the best available buy/sell rate from the order book to match your order. This process is an instant trade unless there is no resting order from the order book.


Example

Mr. B wanted to sell ETH immediately without going through the market price. At that time, the market price of ETH was 40,000 THB/coin. Mr. B, therefore, created a market order to sell 1 ETH. The system will immediately sell his ETH coin at 40,000 THB.


From time to time, you may find that your order has more than one match because the buy/sell volume in the market at the set price is insufficient to meet your order quantity.


The orders that you made will disappear after you cancel them or the orders are matched. The system does not set a time limit or cancel orders automatically.


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To prevent inappropriate orders, our system has a limitation for market orders as follows.

  • If a market order is placed and continuous matching, the system will cancel the remaining unmatched portion of such an order immediately if the last potential matching price is more than 30% different from the first matched price.

 

Stop-Limit Order


Stop Limit Order allows you to pre-set the price condition. Once the price condition is met, the system will generate a buy/sell order automatically. 


There are 2 types of stop-limit orders: Stop-Limit Buy and Stop-Limit Sell.


Stop-Limit Buy is a pending buy order that will be triggered when the market price meets the price condition set.

  • Stop is a price condition.
  • Limit is the price of the buy order you want the system to create after the price condition is met. The order will be matched when the market price equals the set limit price or lower.

Example

If the current market price of Cardano (ADA) is 120 THB, a trader anticipates that if the price goes up to 150 THB, this will break the resistance* price, and then the price will drop to 130 THB. As a result, the trader sets the stop-limit buy order; the stop price (the placing price) at 150 THB, and the limit price (the buying price) at 130 THB. This will enable the trader to buy ADA for 130 THB, which is cheaper than 150 THB.


If the market price only moves to 140 THB, their order will not be executed because the market price has not reached the stop price, 150 THB, making their order not yet placed into the order book.


Stop-Limit Sell is a pending sell order that will be triggered when the market price meets the price condition set.

  • Stop is a price condition.
  • Limit is the price of the sell order you want the system to create after the price condition is met. The order will be matched when the market price equals the set limit price or higher.

 

Example 1: Using Stop-Limit Orders to take profits

A trader has 1 ETH in their wallet and the current price of Ethereum (ETH) is 82,000 THB. The trader anticipates that if the ETH price falls to 80,000 THB, this will reach a support* price, and then the price will rise and hit the resistance price of 85,000 THB. As a result, the trader sets the stop-limit sell order. The stop price (the placing price) at 80,000 THB and the limit price (the buying price) at 85,000 THB. This will enable the trader to sell ETH for 85,000 THB, which is higher than 80,000 THB.

If the market price only moves to 81,000 THB, their order will not be executed because the market price has not reached the stop price, 80,000 THB, making their order not yet placed into the order book.

 

Example 2: Using Stop-Limit Orders to stop loss

You have 1 ETH in your wallet and the current price of Ethereum (ETH) is 100,000 THB. You anticipate that if the ETH price falls to 80,000 THB, this will signal a strong ETH downtrend. To prevent any loss from your held ETH, you create a stop-limit sell by setting the stop price at 80,000 THB and the limit price at 75,000 THB. When the price drops to 80,000 Baht, the system will immediately create a limit sell order of ETH at 75,000 THB. This allows you to sell your ETH between 75,000 - 80,000 THB price length.


If the price of ETH continues to fall below 75,000 THB and your order is not completely matched, your remaining order will continue to match when the market price returns to your stop-limit sell order or higher. As a result, the stop-limit sell function allows you to *Stop Loss, which is a benefit of this function.


* Currently, all cryptocurrencies listed on Bitkub Exchange that can be traded support stop-limit orders except Fantom (FTM).


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Remarks

  • The order will be canceled only if you manually do it or if the order is successfully matched. The system will not automatically schedule or cancel the order.
  • Normally, the system will choose to match orders from the order book according to this priority: (1) best price and (2) the order sent earliest.
  • The examples above are just to help you understand better. The company reserves the right to disclaim any responsibility if you follow the example mentioned and experience losses due to the market mechanism.
  • Cut loss is an immediate asset selling to prevent more losses in the future.

  • *Stop Loss means selling the digital assets to keep the profit or prevent more losses (stopping the digital asset price from falling down further). At the time of Stop Loss, the investor may lose or profit while selling. (Reference)
  • *Support means the prices fall during a downtrend because there is an excess of supply over demand. The lower the prices fall, the more appealing the prices become to those waiting to buy shares (reference).
  • *Resistance means the prices rise when there is more demand than supply. As prices rise, the desire to sell will eventually outweigh the desire to buy (reference).
  • Any buy and sell orders of the same digital asset, placed at the same price, and sent by the same customer will be canceled automatically.

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