Daytrading Crypto on Leverage: How to use Market Orders?

When buying crypto, you must first pick what order you want to place. When trading crypto, there are three sorts of orders: market orders, limit orders, and stop loss orders.

The most basic type of trading order is MARKET ORDERS. Traders that want to be sure that the deal they’ve chosen will be executed place them. A market order is executed immediately and the trader simply places an order to purchase or sell an item, such as Bitcoin, immediately at its current price.

Market orders are the most widely used type of order and this is due to their high liquid content. They’re also believed to be incredibly affordable.

A buy/sell button is available on several brokerages, making market orders easier. So when a trader agrees to execute a market order, he or she is agreeing to sell at the BID price or buy at the ASK price.

Market orders are expected to be executed in real-time, or as near to real-time as practicable. Traders say “the order has been filled” when a market transaction has occurred and the order has been fulfilled. A market order is always filled immediately; otherwise, it is not executed. There are two types of market orders: buy and sell.

Market Orders: Buy Order

Here’s a 3-minute video showing you how to place a market buy order on Phemex:

Market Orders: Sell Order

On the other hand, here’s how you place a Market Sell Order with a 2% Stop Loss:

When compared to limit orders, market orders are extremely different. The key distinction between the two is that crypto traders employ limit orders to acquire crypto assets when a specific price is met.

This is a particularly effective technique if crypto traders expect prices to fall. When traders wish to initiate a long bitcoin position, they frequently use these. Before placing a market order, crypto traders should check the bid-offer spreads. This is due to the fact that a narrower spread indicates more liquidity and a more competitive market.

Is there a disadvantage to using Market Orders?

The major drawback of placing a market order on an exchange such as Phemex is that you are agreeing to the exchange filling your order at the “best price possible for that time,” which means that traders who agree to higher prices will have their market orders filled first, while traders who are more price-sensitive will lose out. It has the disadvantage of negatively affecting more price-conscious traders.

Traders who agree to a higher price, for example, may see their market order filled as the exchange tries to match the best price.


Leave a Comment