What is Market Order and its Working in a Cryptocurrency Exchange

With the increase in popularity of cryptocurrency trading, there has been an increase in the demand for cryptocurrency exchange development – specifically white label exchange software development as a white label solution, being market-ready, enables quick deployment and launch.

[sc_fs_multi_faq headline-0=”h3″ question-0=”Can a short-term trading strategy be followed in cryptocurrency trading?” answer-0=”Yes. Given the volatile cryptocurrency market, short-term trading is considered a good option to benefit from the bullish crypto market.” headline-1=”h2″ question-1=”How can technical analysis help in predicting the future price of cryptocurrencies?” answer-1=”Technical analysts believe that the future price of cryptocurrencies is based on past trading activities and price changes. Therefore, technical analysis helps the analysts to predict the price of cryptocurrencies. ” headline-2=”h3″ question-2=”Which investors prefer market order trading?” answer-2=”Traders who want to execute their orders without any delay generally prefer the market order. In this, the trade is executed immediately.” count=”3″ html=”false”]

One of the crucial components while building a crypto exchange is the order type – it explains how the buy and sell orders will be processed. Orders are of different types, such as market order, limit order, stop order, market making, and more. The most common of these is the market order. Before understanding the market order, let us comprehend the basics of cryptocurrency trading.

Cryptocurrency Trading Strategies

Cryptocurrency traders have long-term and short-term trading strategies. Short-term trading refers to trading where the duration to enter into and exit from a contract is limited to a few days or a few weeks. Short-term trading is considered the best strategy due to the volatile nature of cryptocurrencies. Traders following this strategy need to keep a close eye on the opening and closing prices of cryptocurrencies within a day. The following are the two strategies for short-term trading:

• Daily Support- It is conducted by gaining an in-depth understanding of the prices of cryptocurrencies through technical analysis. The technical analysis is a trading principle that works by analyzing cryptocurrency price trends and patterns through charts. It is believed that the future price of the assets is based on past trading activities and price changes. In this, the traders aim for small to medium profits while avoiding going into losses.

• Hammer Pattern Strategy- In this, the trader analyzes the candlesticks and invests accordingly. It is also known as a pullback trading strategy. The traders of this strategy believe that once the price of cryptocurrencies reaches minimum support, it is sure to rise high. The hammer-like image indicates that the market will soon recover itself.

Market order: Meaning and Working

A market order is a type of trade order where the buy or sell market order is automatically filled up at the current market price. The quantity of the order is the major consideration under this criterion rather than the price. But somehow, slippage may occur where there would be a difference between the expected price and the filled price.

It generally works on the market ask price which is subject to constant variation and assures that there would be no effective loss. A market order is now considered a major feature in white label exchange software and is being widely used in the trading strategy.

Working of the platform: When a market order is placed on an exchange platform, the trader instantly accepts the price offered by the seller. This situation may turn out advantageous or worse for the buyers. Market orders are generally appropriate for those businesses who wish to transact their business at the earliest. The profit through this trading strategy depends on how well a trader analyzes the market patterns and uses them.

There are numerous situations when an individual can make use of market order while cryptocurrency trading. It works on an immediate basis and eliminates the major loss foreseen by the traders. At times, traders also get into the trading before anyone else because they forecast a huge potential in the stock or asset. These are done instantly because the losses or gains which are expected through trading are much higher than the premium rate paid to execute the trade.

It is also advised that while placing a market order on an exchange, the traders should consider the trades in the order book and calculate the approximate value of the currency to be traded. This would ensure that the traders pay a desired amount of money to the counterparty.

While finalizing the trade, you should also consider that once you have placed a market order it is impossible to cancel it as the trade is settled instantly in the exchange software. If you further go beyond selling your coins or buyback then you may suffer huge transaction loss. So, therefore, you should properly optimize your actions before finally placing an order.

Benefits of market order in crypto exchanges

The integration of market orders in white label exchange software is providing many benefits to crypto traders and investors. The following points can be listed as some of the benefits:

• Real-time business transaction: It ensures that the trade is transacted instantly. Whether you are going for buying or selling of crypto assets, the transactions happen in real-time.
• Increased operating speed: This is very beneficial for traders looking forward to benefiting from the bullish crypto market. Increased operating speed means no delay in transactions.
• Attract more traders: A large number of traders get attracted to a platform that allows them to trade quickly and get the best price on the market, for their crypto assets, both while buying or selling.

Conclusion

Cryptocurrency has found its base in the financial market and is impacting all the other major global industries.

If you are looking forward to launching your crypto exchange, we can help you launch it in just 3 weeks. At Antier, we provide the best white label cryptocurrency exchange reinforced with multi-layer security and market-leading features for world-class performance and user experience. At the same time, our experienced blockchain engineers specialize in building a custom crypto exchange from ground zero.

Schedule a free demo of our white label crypto exchange or get in touch with our subject matter experts to share your needs for a custom exchange built from scratch.