Like physical trading, the digital currencies are also involved in different trading options. In physical trading a house/apartment or residents, if you want to sell it or buy from other third-party persons, you were involved in bargaining with the net price. Similarly Cryptocurrency trading business is also performing trading options it’s not like simply buy and sell cryptocurrencies and also trading options like (Market order, stop order, Limit order)
The order matching algorithm is mainly designed for the easy user experience. The four types such as market order, limit order, stop order and stop limit order.
The market order is the type which allows users to trade or exchange the bitcoin at the current market price. It is one of the easiest ways to trade the asset but acquires some extra fees. This in turn sometimes returns the user with profit or sometimes resulting in a fair deal. The trade is matched up with one or more buyers and sellers by the exchange until your order is close to the current market price.
Note: Market orders are profitable when the buyers and sellers are in large number to continue the trading.
The limit order is the smartest strategy for exchange and trading. Because it doesn’t involve losing the value of your asset. The users define the value of the bitcoins at the particular limit to buy/sell. Sometimes the user may get the price above their limit price (when selling) or get the price below the limit (when buying), it depends upon the liquidity nature of the asset. There are different types of limit orders such as
- Limit: Immediate-or-Cancel
- Limit: Maker-or-Cancel.
- Limit: Auction-Only Limit.
A stop order is meant to execute a trade at a specific price. This differs from the limit order because once the stop price is reached, a stop order turns into a market order. It will not appear in order book before they are activated. Stop orders are a smart way to manage losses, but they are also oddly the riskiest of all trades in cryptocurrency in some ways.
Stop Limit Order:
This is similar to the stop order except for the factor that the order turns into limit order once the price is reached. It requires stop price and limit price to be specified simultaneously.
In addition to this types, bitcoin exchange startups can also implement stop-loss orders, trailing orders, take profit orders, Iceberg orders, fill or Kill orders and many more options.
Around 90% of exchanging volume on Wall Street comes through HFT (otherwise known as High-Frequency Trading) and Advanced Algorithmic Trading. In the event that you are outsider to these terms, I would prescribe you to visit the hyperlink above.
However, until further notice, it is sufficiently only to realize that High-recurrence exchanging implies quantitative exchanging that is described by short portfolio holding periods. All portfolio-designation choices are made by electronic quantitative models in this sort of exchanging rather than people doing the diagram and different parameters investigation.
What’s more, one organization that trusts that blockchained AI-based HFT can be exceptionally effective in the continuous market of digital currency has propelled its decentralized AI featured cryptocurrency trading script known as Coinjoker.
The AI concept in bitcoin trading is nothing but the users trading on the platform can choose between three different settings that enable them to trade in the cryptocurrency market using artificial intelligence.