Hata offers different order types for you to use in Spot Trading. You can use them to set your trading strategies and trade efficiently. Let’s look at the common order types in Hata Spot Trading.
What is a market order?
A market order allows you to immediately execute a purchase or sale of an asset at the most favorable current market price available.
You may enter an amount to buy or sell market order. For example, you can buy BTC by entering the Total amount of USD you wish to buy. On the other hand, if you wish to sell your BTC, you can enter the amount of BTC you wish to sell.
What is a limit order?
A limit order is a type of order you can place on the order book, specifying a particular limit price. Unlike a market order, it doesn't execute instantly. Instead, it will only be executed when the market price reaches your specified limit price or exceeds it. This means you have the option to purchase at a lower price or sell at a higher price compared to the current market price.
For instance, suppose you set a buy limit order for 1 BTC at $60,000, while the current BTC price is $50,000. In this case, your limit order will be immediately filled at $50,000, as it is a more favorable price than your specified limit ($60,000).
Likewise, if you place a sell limit order for 1 BTC at $40,000, and the current BTC price is $50,000, your order will be immediately filled at $50,000, as it is a more advantageous price than your limit of $40,000.
Market Order | Limit Order |
Purchases an asset at the market price | Purchases an asset at a set price or better |
Fills immediately | Fills only at the limit order’s price or better |
Manual | Can be set in advance |
What is a stop-limit order?
A stop-limit order consists of two specified prices: a stop price and a limit price. With this order, you can establish the minimum profit you are content with, or the maximum amount you are willing to spend or lose on a trade. When the trigger price (stop price) is reached, a limit order is automatically placed.
Stop-limit orders are valuable tools for minimizing potential losses in a trade. For instance, let's say BTC is currently trading at $40,000, and you set a stop-limit order with a stop price of $39,500 and a limit price of $39,000. In this scenario, when the price drops from $40,000 to $39,500, a limit order will be initiated at $39,000.