Limit & Market Orders

Understanding Limit and Market Orders on Our Platform

This guide explains the two main types of orders you can place: Limit Orders and Market Orders.

What is a Limit Order?

A Limit Order allows you to set a specific price at which you want to buy or sell a token. The order will be executed only when the token’s market price matches (or offers a better price than) the one you set.

• Execution Time: Limit Orders may take time to execute as they depend on market conditions.
• Order Book Placement: The order remains in the order book until it is executed.

Subtypes of Limit Orders

 


Good Till Cancel (GTC)

1. • This option keeps your order in the order book indefinitely until it is fully filled.

2. Immediate or Cancel (IOC)

   • This option fills your order either partially or completely. Any unfilled portion of the order is cancelled immediately.
   • Example: If you place a buy order for 1 BTC at 7500 USDT but only 0.575 BTC is available, the system will fill the 0.575 BTC and cancel the remaining 0.425 BTC.

3. Fill or Kill (FOK)

   • This option ensures your order is completely filled or cancelled entirely. Partial fills are not allowed.
   • Example: If you place a buy order for 1 BTC at 7500 USDT but only 0.575 BTC is available, the system will cancel the order without filling any part of it.

What is a Market Order?

A Market Order executes immediately at the best available price in the order book.

Unlike a Limit order, a Market order is 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. 

• Execution Speed: Instant.
• Price: May vary depending on the order book’s available prices.

Important Note: Use Market Orders only if you need to execute the trade immediately, as they cannot be reversed once executed. If the amount of tokens you want exceeds the available orders at the current market price, the remaining portion will be filled at higher or lower prices depending on market conditions.

How to Use Limit and Market Orders

Now let's see how we can use Limit Order and Market Order on our LATOKEN Platform.

1. Limit Order Example

   • Suppose the BTC/USDT pair is trading at 37,787.5 USDT. To sell 0.3695120 BTC at 37,787.05 USDT, place a Limit Order. 
   • Your order will appear in the order book and execute only when a buyer matches your price. 

Considering BTC/USDT pair. If the current trading price for BTC is 37,787.5 USDT, to sell 0.3695120 BTC at 37,787.05 USDT I will place a Limit order as shown in the below image. 

2. Market Order Example

• • To sell 0.3695120 BTC instantly at the current best market price, place a Market Order.
  • The system will execute your order immediately at the best price available in the order book.

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 to the below image for the same. 

Key Points

• Limit Orders are ideal if you want control over the price.
• Market Orders are suitable for immediate execution but may result in price variations.
  
  

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 exceeds 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! ☺