A Complete Guide on Different Types Of Orders in Cryptocurrency Exchanges
you can launch and deploy your very own cryptocurrency exchange with advanced features that concerns order types and their security.
A Complete Guide on Different Types Of Orders in Cryptocurrency Exchanges
The entire world is going crazy over the new wave of cryptocurrency trading in the hope to make a big fortune! And why wouldn’t they? After all, Cryptocurrency is the currency of the future. It is not only influencing the financial industries, but also the rest of the industries like Healthcare, IT (Information Technology), Automotive, Real-Estate, and many more.
Owning cryptocurrencies may sound exciting but managing it properly might be a bit overwhelming and challenging unless you get in touch with the right Cryptocurrency Exchange Development Agency like LBM Solutions. We help our clients to educate them about blockchain technologies and manage their crypto assets.
If anything is trending in the world as of now, then it is none other than ‘Cryptocurrency’ and people are eager to learn about it. If anybody is interested to learn about Crypto trading and crypto exchanges, then this article will surely help you with that.
Understanding Exchange Order Book
Simply put, an order book is divided by a list of open orders ‘buy & sell’ for a particular trading pair. We can say that it is a place for anyone to participate by putting a bid in case someone wants to purchase the asset or buying from someone who is willing to sell it for the asking price.
Open order remains inside the order book until and unless someone accepts it or agrees to pay the asked amount for a particular asset or gets canceled in a sale’s case. Every trading pair like BTC/Ether (ETH) or BTC/USD has its own order book.
Common Order Types In Cryptocurrency Exchanges
Stop-Loss Order
It is entirely designed to secure the traders from facing any significant loss. It is a limit order type where one can set the asset price in advance but it will not get added later.
Stop-Limit Order
It is similar to the stop-loss order, but the only difference is that you can predefine both stop-price and limit-price. This allows you to set limits within the value range. For instance, you can set the limit order from 10K USD to 1100 USD for 1 USD.
One Cancels Order (OCO)
It is a tool that is used to merge two orders while the trader can run that’s most favorable for the market. After that, the other order gets automatically canceled. For instance, if the BTC price is 40K USD, then you can either place a buy or sell order. One can sell when the BTC price is high and one can buy if the BTC price decreases.
Immediate Or Cancel (IOC)
It lets users terminate the unfilled orders. For instance, if you purchase 40 BTC but you receive only 20 at the execution price, the remaining order would be closed.
Fill Or Kill order (FOK)
Fill Or Kill enables you to fill the order instantly or cancel it. For instance, if you buy 40 BTC, and only half is filled during a specific time, then then the entire order would get canceled.
Conclusion
Although there are several other order types as well in the cryptocurrency exchanges, traders need to be creative with some order types to stay consistent in the volatile crypto market. After going deep into these things, you will gradually realize that crypto trading is nothing more than a deep analysis rather than risky.
Whether you are veteran crypto traders or budding entrepreneurs looking to launch their own Cryptocurrency Exchange, the above-given lists are helpful for everyone. With LBM Solutions, you can launch and deploy your very own cryptocurrency exchange with advanced features that concerns order types and their security.
