How to use limited orders for Cryptocurrency for better trading results
Cryptocurrencies have been the hot theme of the debate in recent years, with many new investors and merchants have been launched every day. Although this can be profitable, cryptocurrencies have their own risk and challenge. One of the general mistakes that beginners make, not effective orders, including marginal orders. The marginal order allows you to buy or sell a certain cryptocurrency at a certain price, but it is important to understand when and how to use them in the context of cryptocurrency trade.
What are limited orders?
Ordering a certain price of certain means (in this case cryptocurrencies). This is not a situation or nothing; If you place multiple orders at different prices, the system meets the highest offer or asks. This approach allows merchants to use price fluctuations while reducing potential losses.
How to use marginal orders in the cryptocurrency of commerce
Follow the following steps to effectively use marginal orders of trade cryptocurrency in trade:
1. Enter your market goals
Determine your market goals before you submit your marginal order. Looking for specific cryptocurrencies (such as bitcoin), device classes (eg BTC/USDT) or periods (eg intrady)? Knowledge of the goal helps set the right entrance and output points.
2. Set the price
Set the price you want to enter or quit trade with border order. For example, if you are looking for a special cryptocurrency and thinks your price will increase by $ 0.10 in the next hour, set your border order to buy BTC/USDT $ 1.00.
3. Select your order type
There are many types of border ordering:
* Market Order: This is the simplest type of marginal order and allows merchants to be done at all costs.
* LIMIT Order: As mentioned above, this type of order requires a special enforcement price. You can choose from different types such as:
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OK until you cancel (GTC): Trade will remain active until you cancel your order or close it manually.
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Immediately or deleted (IOC): Trade is executed immediately if they agree in accordance with the existing marginal order. If the match is not found, the order will be deleted after the specified period (eg 1 minute).
* Stop-Loss Order:
This type of order helps protect your position by moving against the market.
4. Enter your order
Enter the trading platform or stock exchange when setting the marginal order. You may have to provide additional information such as:
* Possible Time (TIF): Trade (eg GMT) must be.
* Quantity: The number of units you want to buy or sell.
* symbol: Cryptocurrency and real estate class related to its marginal order.
5. Check and set
Once you have entered your marginal order, observe its execution and apply it if necessary:
- If the market moves against you and the order is adjusted at a lower price, delete the IOC (GTC) or change the lower level of TIF.
- If the market moves to your benefit and the order is made at higher than expected prices, consider adding additional units to the position.
Using Limitide Use
Limit orders offer a number of benefits to cryptocurrency dealers:
* Flexibility: They allow you to take advantage of price fluctuations while reducing potential losses.
* Risk Management: If you set up a specific price limit, limit orders, help dealers manage risk and avoid severe losses.
* Effective Trading: Limited orders with other types of order (eg stop-loss orders) can be used together to create an effective trading strategy.
Conclusion
Successful trade in cryptocurrency is very important for using marginal orders.