If you have used the CoinMetro exchange platform, you may have noticed that you will have the option to place either a market order or a limit order.
So, what is the difference between the two?
Market orders are the most basic buy and sell trades, where a user places a trade order which then will be processed at the current market price of the asset. For example, if placing a market sell order, this means that the asset will sell for whatever price the asset currently is. Please be mindful that as the markets are volatile, the price displayed when placing the order may not be the price that your asset sells for.
When placing a market order, you are opting for whatever price the asset is currently going for, so the trade will be filled rather quickly at wherever the current price of that asset is at. However, CoinMetro applies price protection on market orders when checking the 'min price' box (shown above), which will ensure that your market order is not filled below the specified price (for buy orders, 'max price'). If you would like more fine-grained control of your market order you can use this setting.
Limit orders are advantageous as they give users more control over the buying and selling prices of their trades. When placing an order to buy an asset, a maximum acceptable purchase price must be selected. When selling an asset, a minimum acceptable sale price must be selected.
A limit order when buying an asset ensures the user that the buy price will not exceed any higher than the amount selected. When placing a sell limit order, this of course would mean that the sale price would not execute any lower than the amount selected.
This gives users more control over their orders placed, however, please be mindful that limit orders are two-sided, meaning that another user would need to either purchase/buy at your specified price in order for it to fill.
Our 24/7 live Customer Support team are available around the clock and are dedicated to answering any questions or feedback you may have. Simply click the blue chat bubble in the bottom right-hand corner to contact us! If you cannot see the chat bubble, please disable browser plugins.
Alternatively, feel free to email us at firstname.lastname@example.org - we will respond within minutes!