Entering Market, Limit and Stop Orders

Jun 24, 2016

On the order panel, you can choose to place a market, limit or stop order. A market order will execute immediately at the current market price. A limit order lets you set your own price, as well as set some advanced order execution options. Stop orders allow you to set a trigger price for a buy or sell.

Market Orders

Select 'market' above the buy/sell buttons to place a market order. Choose "Buy" or "Sell" and enter the size of your order. You can set the size in any supported currency. Selecting "Buy" for example, and entering 100 as the amount, then setting the units to US dollars will buy one hundred dollars worth of the digital currency you have selected at the market price.

  • Market orders cannot be cancelled because they are filled immediately.
  • Market orders may be partially filled at several prices. Each part of your order will be shown in the fills panel.

Limit Orders

Select 'limit' above the buy/sell buttons to place a limit order. Enter the order size, and your price, then select the button to place your order. When you place an order, it will be shown in several views - including 'Open orders', the 'Order book', and the 'Depth chart'. A basic limit order may be partially filled and is subject to price improvement - you may get an even better price than you asked for.

Advanced Limit Order Options

GDAX offers advanced limit order types.

When selecting a limit order, expand the "advanced section" to reveal the following Time in Force policies:

  • Good 'Til Canceled (GTC) - This order will be placed on the order book and remain valid until you cancel it.
  • Immediate or Cancel (IOC) -This order will be placed and if it is not immediately filled, it will automatically be cancelled and removed from the order book.
  • Fill or Kill (FOC) This order will only complete if the entire amount can be matched. Partial matches are not filled with this order type and will not execute.
  • Post Only - You can also check the 'Post only' option. This will ensure the order executes only as a maker (no fee) order. If part of the order results in taking liquidity rather than providing, it will be rejected and no part of the order will execute.

Time in force policies provide guarantees about the lifetime of an order. These types of orders provide advanced options you may be familiar with when trading traditional assets.

Stop Orders

Select 'stop' above the buy/sell buttons to place a stop order. This order type allows customers to mitigate losses that may result from a price swing. By placing an order to buy or sell once the price reaches or falls to a certain level, you can ensure potential losses are minimized. To limit losses to 5% for instance, set a sell stop order for 5% below the price you purchased at.

Sell Stop Example

You purchase 1 bitcoin for $500, with the intention to sell when the price goes up. The price begins to move downward, so you place a sell stop order at $490. The price ends up falling 10%, to $450, but because you set a stop at $490, your loss is limited to 2%.

Buy Stop Example

You sell 1 bitcoin for $500, with the intention to buy back in when the price drops. The price begins to climb, so you place a buy stop order at $510. The price ends up climbing 10%, to $550, but because you set a stop at $510, you've bought back in losing only 2%.

Slippage

Stop orders execute as market orders when the market price reaches or falls to the target you specify. Since these orders are subject to current market conditions, there may be a discrepancy (or "slippage") between the target price you set, and the actual price at which the order is filled.

 

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