There are few constants in crypto, but we can all agree that market volatility is often a key factor behind every trading strategy and investment decision. Having the right tools to manage risk and execute trades effectively is really important — and that’s true whether you’re a seasoned pro or new to crypto trading.
On the Blockchain.com Exchange, we have a wide range of trading tools and offer the standard Market and Limit Orders, as well as the more advanced Stop Orders. Recently, we introduced Stop-Limit Orders and have made it very intuitive to input the order types on the Exchange’s trading interface.
Understanding the differences of each order type can play an immensely valuable role in your trading strategy, and ensure you’re getting the most out of the Exchange.
Here’s a complete overview of each order type:
- A Market Order is simply an order to trade at the prevailing market price — that’s it!
- A Limit Order only executes at a price you have selected. So you can use limit orders to buy at a lower price or to sell at a higher price than the current price. The order will only get executed if the market price moves to the level you that you specified — providing you with more control and protection.
- A Stop Order is an order that automatically places a Market Order after the current price moves past your selected trigger price. You can use a sell-stop order to automatically sell your coins if the market falls past a pre-specified level, thus protecting your position from a further fall in prices.
- A more advanced order is a Sell Stop-Limit Order. This is used to place a sell limit order once a trigger price has been reached. Just like a stop order, you can use this order type to prevent additional losses if the price of the coin falls. The use of the limit order here gives you additional control over the execution.
- Our newest and more advanced order type is the Buy Stop-Limit Order. This is used to place a buy limit order once your desired trigger price has been reached. It’s most valuable if you believe that once a certain price threshold is reached, the price is likely to continue going higher and you want to benefit from trading this momentum. So if you think there’s a big rally coming after a crypto hits a certain price, a buy stop-limit could do the trick.
Now’s a great time to get trading and try some of these order types out for yourself on The Exchange. For a full explanation check-out our support center and if you need help our dedicated customer support team are only a chat-box away.