When trading cryptocurrency on Echobit, there are two main order types: Limit Order and Market Order. Each order type serves different trading strategies, and using them wisely can enhance your trading experience.
What is a Limit Order?
A limit order allows users to set their preferred order quantity and the maximum acceptable buy price or minimum sell price. The order will only be executed when the market price reaches or surpasses the specified price. Users can use limit orders to buy assets at a lower price or sell at a price higher than the current market price.
Advantages:
- Enables buying at a lower price or selling at a higher price, ensuring execution within the desired price range.
- Ideal for traders with specific entry or take-profit targets.
Trading Rules:
- The limit buy price cannot exceed 120% of the latest market price.
- The limit sell price cannot be lower than 80% of the latest market price.
What is a Market Order?
A market order is an order executed immediately at the best available market price. Users do not need to manually set a price, making it ideal for quick execution. The transaction price range is limited to 20% of the latest price, and any orders exceeding this limit will be automatically canceled by the system.
Advantages:
- Instant execution, suitable for taking advantage of market fluctuations.
- Ideal for momentum trading, stop-loss strategies, or quick market entry.
Trading Rules:
- Market buy and sell orders must be within a 20% fluctuation range of the latest market price. Any portion exceeding this range will be automatically canceled by the system to prevent abnormal transactions in extreme market conditions.
Limit Order vs. Market Order: How to Choose?
| Order Type | Applicable Scenario | Execution Speed |
| Limit Order | Planned trading, set target buy/sell price | Needs to wait for a suitable price |
| Market Order | Chasing price, stop-loss, instant execution | Executed immediately |
Different traders can choose the appropriate order type based on their needs to optimize their trading strategy!
Thank you for choosing Echobit. We will continue to provide you with an efficient and secure trading experience!
Echobit Team