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.
Generally, there are two main types of orders:
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.
Is 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:
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.
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 supports market orders and pending limit-orders.
Placing an order
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.
On the above screenshot:
In this scenario, a user has an amount of EON tokens to be traded for BTC. Hence the chosen BTC/EON pair.
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.
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,
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.
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.