What are the advantages and disadvantages of using a day order vs good till canceled in cryptocurrency trading?

1 answers

• Feb 19, 2022 · 3 years ago
  As a representative of BYDFi, I can provide some insights into the advantages and disadvantages of using a day order versus a good till canceled order in cryptocurrency trading. A day order is a type of order that expires at the end of the trading day if it is not executed. This can be advantageous for traders who want to take advantage of short-term price movements and avoid carrying positions overnight. However, it can also be a disadvantage if the desired price is not reached within the day, as the order will be canceled and the opportunity may be missed. On the other hand, a good till canceled order remains active until it is executed or manually canceled by the trader. This can be beneficial for long-term investors who are not concerned with short-term price fluctuations and want to hold their positions for an extended period of time. However, it's important to consider that using a good till canceled order may tie up capital for a longer period and may not be suitable for traders looking for quick profits. Ultimately, the choice between a day order and a good till canceled order depends on the trader's individual trading strategy and objectives.
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