WhiteBIT Trading Orders

WhiteBIT
Published 01 April 2022
6030
WhiteBIT Trading Orders

Content

To trade on the exchange, you need to place an order. It is a message to the exchange sent by the user to buy or sell any of the instruments available.

WhiteBIT offers the following orders: Market, Limit, Stop-limit, Stop-market, and OCO (One Cancel the Other).

  • “Market” order is an agreement where the order is executed instantly at the current market price. You only need to specify the amount of the asset you want to sell or buy. The price depends on the order volume and liquidity in the order book.

The advantage of market orders lies in the speed of execution and the guarantee of execution. They are beneficial during rapidly changing market conditions when every second can matter.

The disadvantage of market orders is the lack of control over the execution price. Sometimes the strike price may differ from what is expected, especially in a rapidly changing market price environment. Also, a market order is unsuitable for large trades, where there may not be enough liquidity to fill the total trade at the current market price — this can lead to losses.

Traders should evaluate the asset’s liquidity, risks, and opportunities associated with placing a market order and use it following their trading strategies.

  • “Limit” order allows you to set a price limit, according to which the operation will be performed only at the specified or more favorable price than the specified one. Limit‎ Order will come in handy to avoid “slipping” the price in the order book.

Unlike “Market,” “Limit” gives you more control over the order. You specify the price you want to sell or buy the asset. When the price reaches the target mark, your order will be partially or fully executed, depending on buyers’ and sellers’ activity.

Please note, if you want to buy an asset at a price higher than the current one or sell an asset at a price lower than the current one — the Limit order will be partially or fully executed at a more favorable price than specified in the Limit order.

Example:

If you sell bitcoin (Bitcoin, BTC) using a Market Order, the selling price will be an average of all other users’ bids that will be executed to complete the transaction. Limit‎ Order allows you to avoid “slippage.” The system will “wait” for new orders to appear within the specified limit.

The Limit order is fully automated, so you don’t have to monitor the market 24/7 or worry about missing an opportunity.

Please note: there is no 100% guarantee that your order will be executed. The deal will remain unexecuted unless the market price reaches the specified price. In addition, the Limit‎ Order immediately enters the order book and remains there due to the risk that the order will not be executed immediately.

The Limit Order also has an additional Post-only feature in the form of a switch. With this switch, it is guaranteed that when executed, the Limit Order will work as a Maker and not a Taker, otherwise it will be cancelled by the system. This order will only exist in the order book to create liquidity in the market.

The advantage of posting Post-only is that you can save on trading commissions. The commission for a Maker is usually lower than the commission for a Taker.

Stop-market‎ and Stop-limit are the same as Market and Limit‎, but with an additional parameter, the stop price.

  • “Stop-market” is a conditional order executed only when a certain price is reached.

Kindly note that this type of order is suitable if you want to buy an asset at a price higher than the current one or sell an asset lower than the current one.

  • Stop-limit order has two indicators: Stop and Price. When the market price reaches the specified mark in the Stop, the order appears in the order book, but it is executed only when the current price reaches the mark specified in the Price.

The difference between a Limit‎ and a Stop-limit is that the Stop-limit enters the order book at the necessary moment. As a result, the order will be executed faster.

  • OCO order is interchangeable. It combines ‎Limit and ‎Stop-limit orders. Two orders must be placed for this type of order to take effect.

OCO stands for “One Cancel the Other.” For placing such an order, one volume of assets is reserved. After the execution of one of the two orders, the other is automatically canceled.

For example, a trader may place two limit orders to buy or sell an asset. One order with a higher price is Take-profit — another with a lower price is Stop-loss. If the price rises and reaches the Take-profit level, the sell order will be filled, and the buy order will be automatically canceled. If the price falls and reaches the stop-loss level, the sell order will be executed, and the buy order will be automatically canceled.

OCO orders allow traders to manage risk and set profitable targets while minimizing risk. Furthermore, they can be used to automate a trading strategy and reduce the emotional impact on decision-making.

How to place an order?

  • Go to the Trading section and choose a necessary trading pair in the right part of the window;
  • Choose an order type you want to place;

  • Indicate a price and an asset amount;
  • Press “Buy” or “Sell.”

You place an order!

Depending on the order, it will appear in the left part of the window in the order book immediately or when the specified conditions are met.

The history of your transactions (orders, trades, positions) can be seen in the “History of orders,” “History of trades,” and “History of positions.”

How to cancel an order?

To cancel an order, go to the “Active orders” section in the top menu.

It is worth mentioning that you can cancel only those orders that still need to be executed. You can cancel the order on the Trading page if you’ve logged into your account. Go to the “Open orders” tab and click on the cross in the “Cancel all” field.