How do market and limit orders work in the world of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Market orders and limit orders are two common types of orders used in digital currency trading. Market orders are executed immediately at the current market price, while limit orders allow traders to set a specific price at which they are willing to buy or sell. Market orders are often used when traders want to enter or exit a position quickly, while limit orders are used when traders want to wait for a specific price level to be reached before executing a trade. Both types of orders have their advantages and disadvantages, and it's important for traders to understand how they work to make informed decisions.
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• Dec 16, 2021 · 3 years ago
  Market orders are like buying something at the store without negotiating the price. You simply pay the current price and get the item right away. On the other hand, limit orders are like haggling with the store owner. You set a specific price you're willing to pay or sell at, and you wait for the market to reach that price. If the market never reaches your price, the trade won't be executed. It's a way to be more strategic and potentially get a better deal, but it also means you might miss out on opportunities if the market moves quickly.
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• Dec 16, 2021 · 3 years ago
  In the world of digital currencies, market orders are commonly used by traders who want to buy or sell quickly at the best available price. These orders are executed immediately, which means you may not get the exact price you see at the moment of placing the order. On the other hand, limit orders allow traders to set a specific price at which they are willing to buy or sell. This gives them more control over the execution price, but it also means the order may not be filled if the market doesn't reach the specified price. It's important to consider your trading goals and the current market conditions when deciding between market and limit orders.
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