What is the difference between 'good til cancelled' and 'day order' in the context of cryptocurrency trading?

3 answers

• Nov 26, 2021 · 3 years ago
  When it comes to cryptocurrency trading, the main difference between 'good til cancelled' and 'day order' lies in the duration of the order. A 'good til cancelled' order remains active until it is either filled or manually canceled by the trader. On the other hand, a 'day order' is only valid for the current trading day and will automatically expire if it is not executed within that timeframe. Using a 'good til cancelled' order provides flexibility as it allows the trader to keep the order open for an extended period of time, potentially spanning multiple trading days or even weeks. This can be useful for long-term investment strategies or when waiting for specific market conditions. However, it's important to note that 'good til cancelled' orders may incur additional fees or restrictions depending on the exchange. In contrast, a 'day order' is more suitable for short-term trading or when the trader wants the order to be executed quickly. It ensures that the order is active only for the current trading day, reducing the risk of unexpected price movements or market changes. Once the trading day ends, any unfilled 'day order' will be automatically canceled. Overall, the choice between 'good til cancelled' and 'day order' depends on the trader's specific trading strategy and time horizon. It's important to consider factors such as market volatility, desired holding period, and trading fees when deciding which type of order to use.
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• Nov 26, 2021 · 3 years ago
  Alright, let's break it down. 'Good til cancelled' and 'day order' are two different types of orders you can place when trading cryptocurrencies. The key difference between them is how long they remain active. A 'good til cancelled' order stays active until it's filled or manually canceled by you, the trader. On the other hand, a 'day order' is only valid for the current trading day and will automatically expire if it's not executed within that timeframe. Now, why does this matter? Well, if you're looking to hold onto your position for a longer period of time or you're waiting for specific market conditions, a 'good til cancelled' order might be your best bet. It gives you the flexibility to keep the order open for as long as you need, even if it spans multiple trading days or weeks. Just keep in mind that some exchanges may charge additional fees or impose restrictions on 'good til cancelled' orders. On the flip side, if you're more of a short-term trader or you want your order to be executed quickly, a 'day order' is the way to go. It ensures that your order is only active for the current trading day, minimizing the risk of unexpected price movements or market changes. Once the trading day ends, any unfilled 'day order' will be automatically canceled. Ultimately, the choice between 'good til cancelled' and 'day order' depends on your trading strategy and time horizon. Consider factors like market volatility, desired holding period, and any associated fees before making your decision.
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• Nov 26, 2021 · 3 years ago
  In the context of cryptocurrency trading, 'good til cancelled' and 'day order' are two different types of orders with distinct characteristics. 'Good til cancelled' orders, as the name suggests, remain active until they are filled or manually canceled by the trader. This means that the order can span multiple trading days or even weeks, giving the trader flexibility in terms of timing. However, it's worth noting that some exchanges may have restrictions or additional fees for 'good til cancelled' orders. On the other hand, 'day orders' are only valid for the current trading day. If the order is not executed within the trading day, it will automatically expire and be canceled. This type of order is more suitable for short-term trading or when the trader wants the order to be executed quickly without carrying over to the next trading day. When deciding between 'good til cancelled' and 'day order', it's important to consider your trading strategy, time horizon, and the specific rules and fees of the exchange you are using. Each type of order has its own advantages and implications, so choose wisely based on your individual needs and preferences.
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