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A List of Crypto Trading Orders
Cryptocurrency trading orders are used to buy or sell cryptocurrencies on a trading platform or exchange. Different types of orders are available to suit different trading needs and strategies. Some common orders include market orders, limit orders, stop-loss orders, and take-profit orders. Other orders include one-cancels-the-other orders, hidden orders, post-only orders, and time-in-force orders. Some less common orders including trailing stop orders, fill-or-kill orders, immediate-or-cancel orders, good-til-canceled orders, and post-only limit orders.
Choosing the right type of order can help you execute your trades consistently with your investment objectives and risk tolerance.
Most Common Orders in Crypto Trading
- Market order: A market order is buying or selling a cryptocurrency at the best price. This type of order is typically used when you want to execute a trade as quickly as possible without worrying about the specific price at which it will be executed.
- Limit order: A limit order is buying or selling a cryptocurrency at a specific price or better. This type of order allows you to set the maximum price you are willing to pay for a cryptocurrency (if you are buying) or the minimum price you are willing to sell for (if you are selling).
- Stop-loss order: A stop-loss order is an order to sell a cryptocurrency when it reaches a certain price. This is used to limit potential losses on a trade. For example, if you bought a cryptocurrency at $100 and set a stop-loss at $90, the trade would be sold if the cryptocurrency price fell to $90 or lower.
- Take-profit order: A take-profit order is an order to sell a cryptocurrency when it reaches a certain price. This is used to lock in profits on a trade. For example, if you bought a cryptocurrency at $100 and set a take-profit at $120, the trade would be sold if the cryptocurrency price rose to $120 or higher.
- One-cancels-the-other order (OCO): An OCO order combines a stop-loss order and a take-profit order. This type of order allows you to set both a stop-loss and a take-profit on a trade, and if one of the orders is triggered, the other order is automatically canceled.
- Hidden order: A hidden order is an order that is not visible in the order book. This type of order is typically used when you do not want other traders to see your order and potentially front-run your trade.
- Post-only order: A post-only order is an order that is only placed on the order book if it does not result in a trade being immediately executed. This type of order ensures you are not paying the taker fee in exchange.
- Time-in-force (TIF) orders specify how long they should remain active before being canceled. The most common TIF orders are “good until canceled” (GTC), “immediate or cancel” (IOC), and “fill or kill” (FOK). GTC orders remain active until they are either filled or canceled by the trader, IOC orders must be filled immediately, or they are canceled, and FOK orders must be filled in their entirety or canceled.
- Trailing stop order: A trailing stop order is a type of stop-loss order that adjusts itself as the price of the cryptocurrency moves. For example, if you set a trailing stop of 10% on a trade and the price of the cryptocurrency increases by 10%, the stop-loss will also increase by 10% so that it stays 10% below the current market price. This type of order protects profits on trade while allowing the trade to profit as the price increases.
- Fill-or-kill (FOK) order: A fill-or-kill order is a type of order that must be filled or canceled. This type of order is typically used when you want to execute a large trade and do not want to have any remaining orders on the order book.
- Immediate-or-cancel (IOC) order: An immediate-or-cancel order is a type of order that must be filled immediately, or it is canceled. This type of order is typically used when you want to execute a trade as quickly as possible and do not want to have any remaining orders on the order book.
- Good-til-canceled (GTC) order: A good-til-canceled order is a type of order that remains active until it is either filled or canceled by the trader. This type of order is typically used when you want to place an order that will remain active for an extended period.
- Post-only limit order: A post-only limit order is a type of limit order that is only placed on the order book if it does not result in a trade being immediately executed. This type of order ensures you are not paying the taker fee in exchange.
- Market-if-touched (MIT) order: A market-if-touched order becomes a market order if the price of the cryptocurrency reaches a certain level. This type of order is typically used to enter a trade at a specific price or to exit a trade if the price moves in a certain direction.
- Discretionary order: A discretionary order is a type of order that allows the trader to specify a range within which the trade can be executed. For example, if you place a buy order with a discretionary range of +-5%, the trade will be executed at the best available price within 5% of the specified price. This type of order is typically used when you want to be more flexible with the price at which a trade is executed.
Uncommon Orders in Crypto Trading
- Pegged order: A pegged order is a type of order that is pegged to the price of another asset or currency. This type of order allows you to trade one asset for the price of another asset. For example, you could place a pegged order to buy Bitcoin if the price of Ethereum reaches a certain level.
- Auction-only limit order: An auction-only limit order is a type of limit order that is only executed during the opening or closing auction of a security. This type of order is typically used to enter or exit a position at a specific price during the auction period.
- Reserve order: A reserve order is only executed if there are enough orders on the other side of the book to fill it. This type of order is typically used to prevent large orders from moving the market and ensure they are filled at a fair price.
- Algorithmic order: An algorithmic order is executed using an algorithm rather than being manually placed by a trader. This type of order is typically used to execute large trades in a way that minimizes the impact on the market.
- Iceberg order: An iceberg order is a type of order that is partially displayed on the order book. This type of order allows you to place a large order without revealing the full size of the order to the market.
- Mid-point peg order: A mid-point peg order is a type of order that is pegged to the mid-point of the bid-ask spread. This type of order is typically used to execute trades at a more favorable price than the current bid or ask price.
- Discretionary peg order: A discretionary peg order is pegged to the price of another asset or currency and allows the trader to specify a range within which the trade can be executed. This type of order combines the features of a pegged order and a discretionary order.
- All-or-none (AON) order: An all-or-none order is a type of order that must be filled in its entirety or canceled. This type of order is typically used when you do not want your order to be partially filled and you want to ensure that it is either filled in its entirety or not.
- Not-held order: A not-held order is a type of order that is not subject to the broker’s discretion. This type of order allows the trader to specify that the order should be executed according to the specified parameters, regardless of other factors.
- On-close order: An on-close order is a type of order that is executed at the closing price of the market. This type of order is typically used to enter or exit a position at the end of the trading day.
- On-open order: An on-open order is a type of order that is executed at the opening price of the market. This type of order is typically used to enter or exit a position at the beginning of the trading day.
- Scale order: A scale order is a type of order that allows the trader to specify a series of orders at different prices and sizes. This type of order is typically used to enter or exit a large position over time in a way that minimizes market impact.
- Sweep-to-fill order: A sweep-to-fill order is used to fill the remaining quantity of an order using the best available prices on the market. This type of order is typically used to ensure that an order is filled as quickly and efficiently as possible.
- Volatility-based order: A volatility-based order is a type of order triggered by changes in the volatility of a security. This type of order allows the trader to specify a level of volatility at which the order should be executed.
Many other orders can be used in cryptocurrency trading, and exchanges and platforms often introduce new order types. Some of the less commonly used order types include:
- Advanced limit order: An advanced limit order is a type of limit order that allows the trader to specify additional conditions for the execution of the order. This type of order is typically used to execute more complex trading strategies.
- Bracket order: A bracket order is a type of order that consists of a main order and two secondary orders (a stop-loss and a take-profit). This order automatically exits a trade at a predetermined profit or loss level.
- Contingent order: A contingent order is a type of order that is only executed if a certain condition is met. This type of order allows the trader to specify a trigger price or condition that must be met before the order is executed.
- Hidden reserve order: A hidden reserve order is a type that is not visible on the order book and is only executed if there are enough orders on the other side of the book to fill it. This order prevents large orders from moving the market and ensures they are filled at a fair price.
- Market-on-close order: A market-on-close order is a type of order executed at the market’s closing price. This type of order is typically used to enter or exit a position at the end of the trading day.
- Market-on-open order: A market-on-open order is a type of order executed at the market’s opening price. This type of order is typically used to enter or exit a position at the beginning of the trading day.
- Pegged-to-market order: A pegged-to-market order is a type of order that is pegged to the current market price of a security. This order allows the trader to enter or exit a position at the current market price.
Conclusion
The best type of order for a particular trade will depend on the specific goals and circumstances of the trader. Some types of orders may be more suitable for certain situations than others. Here are a few considerations to keep in mind when choosing the best type of order for a trade:
- Time horizon: If you are trading with a long-term horizon, you may want to use a GTC or a bracket order to manage your trade over a longer period. If you are trading with a shorter-term horizon, you may want to use an IOC or FOK order to execute your trade quickly.
- Price certainty: If you want to be certain of the price at which your trade will be executed, you may want to use a limit order. If you are willing to accept a slightly less favorable price in exchange for quicker execution, you may want to use a market order.
- Risk management: If you want to protect against potential losses on a trade, you may use a stop-loss or bracket order. You may use a take-profit or bracket order to lock in profits on a trade.
- Market impact: If you are placing a large order and do not want to affect the market price, you may want to use an iceberg or reserve order. If you place a smaller order and do not mind paying the taker fee, you may want to use a market or limit order.
Ultimately, the best type of order for you will depend on your specific trading goals and the circumstances of your trade. Therefore, always consider your options and choose the order type most appropriate for your needs.