This section explains you about two types of orders you can place on our platform. That is Limit orders and Market orders.
- What is a limit order?
Limit order is a type of order where you can set the Limit price at which you want to buy/sell a token. Limit order will be executed only when the token is trading at the price set by you (Or better price).
Please note that it can take time for limit order to be executed since it depends on market, but it will be placed in the order book until as it gets executed.
Additionally there are 3 subtypes of limit orders which you can use on our platform according to how long you want the order to be in the order book. We will see these 3 suborder types below:
Good till cancel: You can use this option in the Limit order section when you want your BUY/SELL order to be present until it gets filled irrespective of the time.
Immediate or Cancel: This subtype of Limit order will be helpful when you want your order to be filled partially or completely otherwise want it to be cancelled.
For example, you want to buy 1 BTC at 7500 USDT but there is only 0.575 BTC sell order at 7500 USDT. So when you place the order through this option 0.575 BTC will get filled but remaining order of 0.425 BTC will get cancelled.
Fill or Kill: Unlike the previous option, this limit order subtype either will fill the order completely or gets cancelled.
Considering the previous example, if you place a buy order for 1BTC at 7500 USDT and there is only 0.575 BTC sell order at 7500 USDT the order gets cancelled completely without filling the 0.575 BTC since this subtype won’t fill the partial orders.
- What is a market order?
Unlike Limit order, Market order is the one where the order gets filled instantly according to the best available price in the order book.
So the execution of the Market order will be instant unlike the Limit order.
- How to use LIMIT ORDER and MARKET ORDER?
Now let's see how can we use Limit order and Market Order on our Latoken Platform.
Considering BTC/USDT pair. Current trading price for BTC is 7150 USDT. To sell 0.01 BTC at 7180 USDT I will place a Limit order as shown in the below image.
You can see the order is placed in the order book and will be executed only when somebody is willing to buy your order at 7180 USDT.
Placing a market order is similar but it will be executed immediately at the best price available. You just need to enter the amount you want to sell at the market price. Please refer the below image for the same.
Note: Please use market order only in case you want to sell your tokens instantly without worrying about the token price as once the market order is executed it cannot be reversed.
If the amount of tokens you want to buy exceed the amount of orders at the current market price, it will fill your order at any price (even much lower than the original market price you saw when you placed your order).
Happy trading ☺