Over the last few years, India has seen a significant revolution in crypto trading. According to an article published in The Mint, the cryptocurrency market in India witnessed growth from $923 million (Apr’20) to $6.6 billion (May’21). Many exchanges offering crypto trading have started operations in India. Zebpay is considered to be one of the best cryptocurrency exchanges in India. Trading in cryptocurrencies is similar to trading in shares. A trade order is a contract to buy or sell a specific cryptocurrency at a particular price or price range. Let us understand what the common order types in crypto trading are.
This is the most common type of order. A market order is an order to buy or sell the asset at the best available price prevalent when placing the order. They are executed instantly. For example, if you put a market order to buy Ether worth Rs. 5000, it will be filled instantly and the best available price at the exchange.
Price-sensitive traders commonly use this. Here one does not buy at the market rate. Instead, one puts a specific price to buy or sell the currency. For example, if the current market price of Ether is Rs. 1000, you can place an order to Buy Ether at Rs 975. Your order will be executed only if the market price of Ether comes to Rs. 975. Similarly, you can put an order to sell Ether at Rs 1050. Again, the order will be executed only if the market price of Ether moves up to Rs. 1050. It is possible that the price does not reach your specified level, and the order may remain unfulfilled. However, the Limit Order ensures that you do not pay more or receive less than your specified price.
STOP LIMIT ORDER
These orders are suitable for very price-sensitive traders and want to protect their investments against excessive market volatility. For example, in a Buy Stop Limit Order, one sets a Stop price and a Limit Price. Once the Stop Price is reached, the Limit Order is activated, and the order is executed only when the currency is available at or better than the limit price specified. Similarly, a Sell Stop Limit Order is just the opposite. Here, one may want to sell the currency once it goes below a specific price to minimize losses. Finally, one must also keep in mind the fees associated with trading through online exchanges. Some exchanges also charge a membership fee. In the case of Zebpay, fees are waived off for members who make at least one trade a month. Fees per trade vary from .10% to .25%, depending on the type of order.
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