What is a 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.
After submission, the order will be open and queued in the order book for order matching.
- 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.
ETH was worth about 33,000 Baht 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 Baht. He created a limit order of 30,000 Baht / ETH and 30,000 Baht spend. 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 Baht, 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 Baht/coin. A few days later, the price of ETH rose to 34,000 Baht 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".
In order to prevent inappropriate orders, our system has a limitation for limit orders. Please see the details below.
- For limit buy orders: the buying price that you wish to set cannot be lower or higher than 20% of the current (market) price.
- For limit sell orders: the selling price that you wish to set cannot be lower or higher 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 message "Rate is inappropriate" as shown in the screenshot below.
What is a 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.
Mr. B wanted to sell ETH immediately without going through the market price. At that time, the market price of ETH was 40,000 Baht/coin. Mr. B, therefore, created a market order to sell 1 ETH. The system will immediately sell his ETH coin at a price of 40,000 Baht.
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.
What is a 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.
If the current market price of a coin is 10 THB, traders want to buy the coin at 12 THB but want their order placed when the price goes up to 15 THB first. So they will set the stop price (the placing price) at 15 THB and the limit price (the buying price) at 12 THB.
When the market price moves to 12 THB, their order will not be executed because the market price has not reached the stop price, 15 THB, making their order not yet placed into the order book.
When the market price finally moves to 15 THB (the stop price), this buys stop-limit order will be placed in the market and will be filled when the market price goes down to 12 THB (the limit price).
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 current price of Ethereum (ETH) is 120,000 Baht. You think that the market will be in a downtrend and the price of ETH could fall a lot. Hence, you create a stop-limit sell by setting the stop price at 100,000 Baht and the limit price at 98,000 Baht. When the price drops to 100,000 Baht, the system will immediately create a sell order of ETH at 100,000 - 98,000 Baht.
If the price of ETH continues to fall below 98,000 Baht and your order was not completely matched, your remaining order will continue to match when the market price returns to your stop-limit sell order. As a result, the stop-limit sell function allows you to cut your losses, which is a benefit of this function.
Currently, stop-limit orders are only available for BTC, ETH, USDT, DOGE, ADA, XRP, BNB, IOST, KUB, DOT, NEAR, ALPHA, and CRV on the Bitkub Exchange platform.
- The order will be canceled only if you manually do it or the order is successfully matched only. 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 in the event that you follow the example mentioned and experience losses due to the market mechanism.