Orders in practice

You will find the theory of orders in the lesson Order types in depth. Here is the practice: the order panel has only a few fields, but one extra zero or mixing up two buttons can cost you a lot. So Professor Wick advises: slowly, and look twice before you click.

A limit order: "I will buy when it is at that price"#

Bitcoin costs 60,000 euros and you want to buy when it drops to 58,000.

1. The Spot tab, the Buy button, the Limit type.
2. Price: 58,000 – the highest price you are willing to pay.
3. Amount: 0.002 BTC – or fill in Total: 116 EUR. The fields are linked: price × amount = total.
4. Check the summary and confirm.

The order appears in open orders and waits. If the price never reaches 58,000, it never executes. If you no longer want it, cancel it.

A market order: "I will buy now, at whatever it goes for"#

The Market type has no price field. You enter only an amount or a sum and buy immediately at the best offers in the order book. It is fast, but you do not know the exact price in advance – especially with thinly traded pairs and large amounts, slippage can cost you.

Stop-limit: "sell if it is falling"#

You bought bitcoin at 60,000 and want to sell it if the price falls below 55,000.

1. Sell, the Stop-limit type.
2. Stop (trigger price): 55,000 – once a trade happens at this price, the order activates.
3. Limit: 54,500 – the lowest price you are willing to sell at. Leave some room between the stop and the limit, or the order may not execute in a sharp fall.
4. Amount: how much you are selling.

The mistakes that cost the most#

• An extra or a missing zero. 5,800 instead of 58,000 on a sale means selling at a tenth of the price. A limit sell below the current price executes immediately at the best bids.
• Buy instead of Sell. The buttons are side by side and differ only in colour.
• The slider at 100%. One drag bets your whole balance.
• Futures instead of Spot. See lesson 13.

Try it yourself#

The practice panel below is a simulation: no exchange, no real money. The order book is deliberately thin near the price, so you can see what a big market order does. Try:

1. A limit buy at 58,000. Where does the order go, and what happens to your balance?
2. A sale at 5,800 instead of 58,000. What does the preview tell you before you confirm?
3. A market buy of 0.03 BTC. How many price levels of the book does it go through, and what is the slippage?
4. A stop-limit sale with both the stop and the limit at 55,000. Why does the simulator warn you?

Common myths#

• "A limit buy above the current price will wait." It does not execute at your higher price but immediately at the best offers in the book – which can still cost you more than you intended.
• "A stop-limit always protects me." In a sharp fall through your limit, the sale does not execute.
• "A market order is the cheapest because it is instant." You pay a higher fee and possibly slippage.