Exchange orders

Trading on exchanges is performed with orders. An order is an instruction to buy or sell at a specified rate, remaining valid until executed or canceled.

Trading on Exscudo Exchange is no different and is performed with orders. This article explains what an order as a part of the trading process is, what order types exist there: globally, and on Exscudo Exchange, how to place an order, etc. Understanding the differences between the order types available can help you determine which orders suit your needs best.

Order types

Generally, there are Market and Pending orders.

Market order

Considered the most basic of all order types, a market order is a buy or sell order to be executed immediately at the best available price. It is widely considered the fastest and most reliable way to enter or exit a trade.

Pending order

The commitment to buy or sell at a pre-defined price in the future, triggering for execution when the price reaches the indicated level. Pending orders are subdivided into:

• Stop-orders: a pending order to buy at market above the current market price or to sell at market below the current price if the order price is reached;
• Limit-orders: a pending order to buy at market below the current market price or to sell at market above the current price if the order price is reached.

Exscudo Exchange

Exscudo Exchange supports market orders and pending limit-orders.

Placing an order

To place an order, one has to sign in to Exscudo Exchange. If an account has not yet been registered, there is a need to sign up.

When signed in, the front page of Exscudo Exchange is displayed. Here, one can choose a pair to trade and place an order of one of two available types.

Market order

On the above screenshot:

• The chosen pair is BTC/EON;
• The order type is market;
• The action is buy.

In this scenario, a user has an amount of EON tokens to be traded for BTC. Hence, the chosen BTC/EON pair.

• When switching to Market tab in the lower right lower corner, the exchange automatically offers the best ask price for buying BTC available at the moment;
• All a user needs to proceed is to type in the amount of BTC to buy. Once done, the system automatically calculates the total cost in EON;
• Clicking Place order executes the order provided that there is enough BTC sold at the moment.(you will get fee notification) If not, the order gets rejected automatically with an error of 'Not enough market supply...'

The same drill applies to market sell orders, at the best bid price available at the moment. Note that the bid price is always lower than the asking price.

Limit order

In this scenario, the intention is to sell BTC for EON at a price higher than the best one available at the moment. To place a corresponding order,

• Choose the BTC/EON pair;
• In ORDER section, switch to Limit tab;
• Enter the price in EON;
• Enter the amount of BTC to sell;
• Click Place order.

A sell limit order is placed. It is going to be executed when the indicated price in EON is reached. Until then, it is going to stay in pending state, with the option to be canceled at any moment.

Slippage

The term refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage often occurs during periods of higher volatility when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of the trade.

This means that orders of any type are always executed at a current market price. That is, not exactly at the indicated price, but at a price slightly lower or higher. Such a peculiarity of market execution is called slippage and is considered to be normal on any exchange, including Exscudo Exchange.