How do market orders and limit orders differ when it comes to trading digital currencies?

1 answers

• Dec 16, 2021 · 3 years ago
  Market orders and limit orders are two different types of orders used in trading digital currencies. A market order is used when a trader wants to buy or sell a digital currency at the current market price. It is executed immediately and ensures that the order is filled, but the actual execution price may vary. On the other hand, a limit order is used when a trader wants to buy or sell a digital currency at a specific price or better. It allows the trader to set a price at which they are willing to buy or sell, and the order will only be executed if the market reaches that price or better. The advantage of a market order is that it guarantees execution, but the disadvantage is that the price may not be optimal. The advantage of a limit order is that it allows the trader to set a specific price, but the disadvantage is that the order may not be filled if the market does not reach that price. Overall, market orders are suitable for traders who want immediate execution, while limit orders are suitable for traders who have a specific price in mind and are willing to wait for it to be reached.
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