Market order vs Limit order on Crypto Auto Trading
What is a market order?
A market order is the easiest trade to do, but as a trade-off involves extra fees. When you buy or sell via a market order, you’ll buy or sell cryptocurrency at the market price plus an immediate fee, if applicable. You are matched up with one or more buyers and sellers by the exchange you are trading on until your order is filled at or around the current market price. This can backfire when the market is volatile. You can end up buying or selling at a lower or higher price than expected, but when the market is active and steady you’ll typically buy and sell at, or close to, the market price.
What is a limit order?
A limit order is the smartest trade to do in most cases because it isn’t subject to “slippage” (you get to define your price). When you buy/sell at a limit price, you set the price you want to buy/sell at. The order is executed when a buyer/seller wants your coins. Like with a market order, you won’t necessarily get the exact price you wanted. With that said, with limit orders, you’ll sometimes get a price above your limit price (when selling) or below (when buying). In other words, to restate, limit orders aren’t subject to slippage. You’ll either get a better price, or the price you asked for. The danger with limit orders is that if you are trying to take profits, and you set your limit too high/low you may miss an opportunity to fill your order.
How does Auto Trading affect us?
In Auto Trading we are having some exchanges that trade with market orders and others with limit orders.
The exchanges that trade with market orders can affect us in only one way. In the case that it would take a price that is higher or lower than the calculated one, if that happens, the profit may vary from the estimated profit calculated.
The exchanges that trade with limit orders will have a different impact, a trade may remain open if the order book is not enough for our trade amount. So it may happen that one trade stands opened, though Crypto Auto Trading bot is programmed to avoid that.
Which are the exchanges available on the platform that have Market order?
Binance, Kraken, Bitstamp, HitBTC and Huobi.
Which are the exchanges available on the platform that have Limit order?