CoinZoom offers several order types via the Order Form box to give you the tools necessary to execute your trading strategy successfully.
A limit order is one of the most basic order types. It allows the trader to specify a price and amount they would like to buy or sell.
Example: If the current market price is 250 and I want to buy lower than that at 249, then I would place a buy limit order at 249. If the market reaches 249 and a seller’s ask matches with my bid, my limit order will be executed at 249.
A buy limit should be placed at a price below the current market buy price
A sell limit should be placed at a price above the current market sell price
A market order is an order type that executes immediately against the best price available. As long as there are willing sellers and buyers, market orders are filled. A market sell will match the best available bids on the order book, and a market buy will match against the best available asks on the order book.
Market orders are often used when rapid execution is prioritized over the price at which the order executes. When placing this order, the trader prefers the trade to happen immediately at the current best price available.
A stop order is used to trigger a market buy or sell when the market crosses your trigger price
This is often used as a stop loss order if the market is moving against an open margin position. Stop orders will fully execute as a market order once the trigger price is reached.
Example: If the current market price is 250, the trader in a long position might want to sell if the price reaches 245. A stop sell at 245 will be used in this case.
If shorting, a trader would place a buy stop above the current price. This would mean that if the market goes against their short (up) they can cut their losses by buying to close or reduce their short position.
Example: If the current market price is 250, the trader in a short position might want to buy if the price reaches 255. A stop buy at 255 will be used in this case.
A sell stop should be placed at a price below the current market buy price
A buy stop should be placed at a price above the current market sell price