On the BitTap platform, users can choose from various order types to execute trades based on their specific needs. These order types help traders control the timing, price, and risk management of their buy and sell transactions under different market conditions. Below are the common order types available on BitTap:
Market Order A market order is an order that is executed immediately at the current market price.
Features:
- Fast execution: The order is executed immediately at the current market price.
- No price control: You cannot specify the exact buy or sell price.
Use case: When you need to buy or sell cryptocurrency immediately without being concerned about the price, a market order is the best choice.
Limit Order A limit order allows users to set a specific buy or sell price. The order will only be executed when the market price reaches or exceeds the limit price.
Features:
- Price control: Users can specify the exact buy or sell price.
- No guaranteed execution: If the market price does not reach the set limit, the order may not be executed.
Use case: When you want to buy or sell cryptocurrency at a specific price and are willing to wait for the market to reach your desired level, a limit order is ideal.
Stop-Limit Order A stop-limit order is a risk management tool that triggers a buy or sell order when the market reaches a specified price.
Features:
- Automatic trigger: The order is automatically triggered when the stop price is reached.
- Price control: Users can set a specific limit price for the buy or sell order.
Use case: When you want to automatically lock in profits or minimize losses during market volatility, stop-limit orders help manage risk.
Stop Order A stop order is triggered when the market reaches a specified stop price, automatically executing the order at the market price. It is used to prevent significant losses in a declining market.
Features:
- Automatic execution: Once the market price hits the stop price, the order is executed at the market price.
- Loss prevention: It helps limit losses due to market fluctuations.
Use case: When you want to set a protection level to avoid significant losses during a market downturn, a stop order is a useful tool.
Trailing Stop Order A trailing stop order is a dynamic order type that adjusts the stop price automatically as the market price moves, helping to lock in profits or reduce losses.
Features:
- Dynamic adjustment: The stop price automatically adjusts as the market price moves in your favor.
- Profit locking: The trailing stop order triggers when the market reverses, locking in profits or minimizing losses.
Use case: In volatile markets, a trailing stop order can help you adjust your protection level as the market moves favorably, preventing profit reversal or minimizing losses.
Iceberg Order An iceberg order is a type of order where a large order is split into smaller ones to avoid impacting the market price. Only a portion of the order is visible to the market at a time, while the rest is revealed gradually as the previous portion is executed.
Features:
- Hidden order size: Prevents a large order from causing price fluctuations.
- Gradual execution: The large order is broken into smaller parts to minimize market impact.
Use case: When you want to hide the full size of a large trade and execute it gradually, an iceberg order is an ideal option.
Stop-Loss Limit Order Similar to a stop order, a stop-loss limit order generates a limit order instead of a market order when triggered. This allows the user to set a minimum sell price to avoid executing a trade at a lower price than desired.
Features:
- Double control: After triggering the stop order, the generated limit order ensures the asset is not sold below the specified price.
- Risk management: Prevents selling assets at undesirable prices during sharp market movements.
Use case: When you want to manage losses in a falling market but ensure that the asset is not sold below a certain price, a stop-loss limit order is suitable.
