In spot trading, common order types include:
-
Market Order: A market order is an order type that immediately buys or sells cryptocurrency at the current market price. When you place a market buy order, you will immediately buy cryptocurrency at the current market price; when you place a market sell order, you will immediately sell cryptocurrency at the current market price. Market orders are usually used when you need to buy or sell cryptocurrency immediately.
-
Example: When you trade with a market order, you will buy or sell cryptocurrency at the current market price, so there is no guarantee of the final trade price. For example, you can place a market buy order for 1 BTC at the current market price. Alternatively, you can place a market sell order to sell 1 ETH at the current market price.
-
Limit Order: A limit order is an order typer to buy or sell cryptocurrency at a price you specify. When you place a limit buy order, you need to specify the price at which you wish to buy cryptocurrency and if the market price is lower than that price, your order will be executed; when you place a limit sell order, you need to specify the price at which you wish to sell cryptocurrency and if the market price is higher than that price, your order will be executed. Limit orders are usually used for scheduled trades, i.e. when you want to trade at a specific price.
-
Example: When you trade with a limit order, you can specify the price at which you wish to buy or sell cryptocurrency, but there is no guarantee that the final trade will be executed. For example, you could place a limit buy order to buy 1 BTC at $10,000. In this case, if the market price is below $10,000, your order will be executed. Alternatively, you can place a limit sell order to sell 1 ETH for $500. In this case, if the market price is higher than $500, your order will be executed.
| Market Order | Limit Order |
| Buy assets at a market price | Buy assets at a set price or a more desirable price |
| Immediate transaction | A transaction can only be completed when the limit order price or better is reached |
| Manual operation | Prices can be set in advance |