Can you explain the concept of market order and limit order in relation to trading cryptocurrencies?

1 answers

• Nov 29, 2021 · 3 years ago
  In the context of trading cryptocurrencies, a market order is an instruction to buy or sell a cryptocurrency at the current market price. It is executed immediately and guarantees that the order will be filled, although the actual price may differ slightly due to market fluctuations. On the other hand, a limit order is an instruction to buy or sell a cryptocurrency at a specific price or better. It allows traders to set a target price at which they are willing to buy or sell, and the order will only be executed if the market reaches that price or better. Limit orders provide more control over the execution price, but there is a possibility that the order may not be filled if the market does not reach the specified price. Both market orders and limit orders are commonly used in cryptocurrency trading to take advantage of price movements and manage risk effectively.
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