Spot trading is one of the most popular forms of trading in cryptocurrency markets. It involves the immediate buying or selling of owned assets. Understanding the order types available is crucial for trading effectively. Currently, one primary order type is available on our spot trading platform: Market Orders.
In this article, we will explore the main order types in detail, including how they are placed, filled, and executed.
Market Orders
A market order is a straightforward order type that allows traders to buy or sell assets instantly at the best available price in the market. This order type prioritizes speed over price, making it suitable for traders looking to quickly enter or exit a position.
How Market Orders Work
- Placement: The order is executed immediately after it is placed, based on the best available price in the order book.
- Execution: The system matches your order with the best price offered by counterparties in the market.
Example: Buying Bitcoin (BTC)
Scenario: You want to purchase 0.5 BTC at the current market price.
Steps to place the order:
- Navigate to the trading interface and select the BTCUSDT pair.
- Choose Market Order as the order type.
- Enter the amount of BTC you want to buy (e.g., 0.5 BTC).
- Confirm the order.
Execution process:
- Suppose the best available ask price in the order book is 86,500 USDT.
- Your order will be matched and executed at this price.
- If the liquidity at 86,500 USDT is insufficient to fill your entire order, the system will automatically match the remainder with the next available price.
Trigger Orders
A trigger order allows you to set a predefined price (trigger price) at which a market order will be executed. This type of order is useful for executing trades only when specific price conditions are met.
How Trigger Orders Work
- Placement: Specify a trigger price and the system waits for this price to be reached.
- Execution: Once the trigger price is hit, the system places a market order, which is executed at the best available price in the order book.
Example: Selling Ethereum (ETH)
Scenario: You hold 1 ETH and want to sell it at 3,200 USDT to lock in profits when the price rises to your target.
Steps to place the order:
- Navigate to the trading interface and select the ETHUSDT pair.
- Choose Trigger Order as the order type.
- Set the trigger price to 3,200 USDT
- Enter the quantity to sell (e.g., 1 ETH).
- Confirm the order.
Execution process:
- When the market price of ETH reaches 3,200 USDT, the system triggers a market order.
- The system sells your 1 ETH at the best available bid price.
- The proceeds in USDT are credited to your account instantly.
Recurring Buy Orders
Recurring Buy orders allow users to automate cryptocurrency purchases based on a preset schedule. This feature is ideal for long-term investors looking to build their portfolios gradually and consistently.
How Recurring Buy Orders Work
- Placement: Set up a Recurring Buy plan by selecting a cryptocurrency, choosing a schedule, and entering your investment amount.
- Execution: The system automatically executes purchases based on your selected interval.
Example: Investing in Bitcoin (BTC) Weekly
Scenario: You want to invest 100 USDT in BTC every Monday.
Steps to place the order:
- Navigate to the trading interface and select the BTCUSDT pair.
- Choose the order type, Recurring Buy.
- Tap Create New to start the setup process.
- Set the schedule to Weekly and select Monday as the day.
- Enter the investment amount (e.g., 100 USDT).
- Confirm the order.
Execution process:
- Every Monday, the system will automatically purchase BTC worth 100 USDT at the best available market price.
- Your portfolio grows steadily without requiring manual intervention.
Comparison: Market Order vs. Trigger Order vs. Recurring Buy Order
| Feature | Market Order | Trigger Order | Recurring Buy Order |
| Purpose | Immediate execution at the best price | Conditional execution when the trigger price is reached | Automated purchases at regular intervals |
| Execution Speed | Instant | Dependent on the trigger price | Scheduled based on the set interval |
| Control Over Timing | Immediate | Trigger-based | Set interval (daily, weekly, monthly) |
| Suitability | Quick entry or exit | Automating trades based on market conditions | DCA (Dollar-Cost Averaging) strategy, long-term investing |
Advantages of Each Order Type
Market Orders
- Ideal for traders who prioritize speed over price.
- Suitable for highly liquid markets where price slippage is minimal.
Trigger Orders
- Ideal for automating trades and managing risk.
- Allows traders to define entry or exit points without continuously monitoring the market.
Recurring Buy
- Perfect for long-term investment strategies, such as Dollar-Cost Averaging (DCA).
- Enables automatic, regular investments without requiring active involvement. Great for traders who want to build positions over time at set intervals.
Have more questions? Submit a request