How to Place Limit Orders in CoinMart

Placing limit orders allows you to set a specific price at which you want to buy or sell cryptocurrency, giving you greater control over your trades. With CoinMart's latest update, you now have the ability to choose between Limit and Market orders directly within the app, depending on your trading strategy and preference.

What is a Limit Order?

A Limit Order is an order to buy or sell a cryptocurrency at a specific price or better. It ensures that your order will only be executed at the price you specify or a more favourable price. However, it may not be executed if the market price does not reach your limit price.

Limit Orders vs. Market Orders

• Limit Order: You set a specific price, and the order will only execute if the market reaches that price. Ideal for those who prefer control over price rather than speed.
• Market Order: The order is executed immediately at the current market price, ensuring the fastest transaction but without control over the exact price.

Understanding When to Use a Buy or Sell Limit Order

When placing a limit orders, it's essential to understand how the order behaves based on the direction of your trade - whether you’re buying or selling.

• Buy Limit Order: The order will only execute if the market price falls to your specific price or lower. This allows you to buy the cryptocurrency at or below your desired prices, giving you control over the entry point. 
• Sell Limit Order: The order will only trigger if the market price rises to or exceeds your specified price. This lets you sell at or above your target price, ensuring you exit the trade when the marker meets your expectations.  

Using limit orders helps you control the price at which you enter or exit trades, but it doesn't guarantee that the order will be executed if the market does not reach your specified price.

Troubleshooting Tips for Limit Prices

To avoid potential confusion and ensure your limit orders work as intended, keep the following tips in mind:

• For Buy Orders: If you set your buy limit price higher than the current market price, your order will be filled immediately at the lower market price. This may cause confusion, as it would behave like a market order rather than a limit order. To maintain control over your entry price, always set your buy limit price below or at the current market price.
• For Sell Orders: If you set your sell limit price lower than the currency market price, your order will also execute immediately at the higher market price. This could defeat the purpose of using a limit order, as it would again act like a market order. To avoid this, ensure your sell limit is set at or above the current market price  

How to Place a Limit Order on CoinMart

Follow these simple steps to place a limit order:

Step 1: Log In to Your CoinMart Account

Open the CoinMart app and log in to your account.

Step 2: Navigate to the Trading Section

Once logged in, go to the [Trade] section within the app.

Step 3: Select Your Preferred Trading Pair

Choose the cryptocurrency pair you want to trade (e.g., BTC/EUR).

Step 4: Choose "Limit buy order" from the Order Type

You will see options for different order types. Select Limit buy order.

Step 5: Set Your Target Price

Enter the price at which you want to buy or sell the cryptocurrency. This price is the target price, and your order will only be executed when the market reaches this price.

Step 6: Enter the Amount

Specify the amount of cryptocurrency you want to buy or sell.

Step 7: Confirm the Order

Double-check the details, including the limit price and amount. If everything is correct, click [Continue].

Step 8: Monitor Your Order

Your limit order will now be active. You can track the status of your order in the [Open Orders] section of the app. The order will remain open until it is fully executed or cancelled.

When to Use a Limit Order

• Better Price Control: Use limit orders when you want more control over the price you buy or sell at, rather than accepting the current market price.
• Avoid Market Fluctuations: If you expect the market to move in your favour and prefer waiting for your desired price, a limit order can help you maximise profits or minimise losses.
• Not Time-Sensitive: Limit orders are ideal when your trade isn’t urgent, and you are willing to wait for the market to meet your desired price.

Key Tips for Using Limit Orders

• Set Realistic Prices: If your limit price is set too far from the current market price, the order may not be executed. Be mindful of current trends and set a reasonable limit.
• Partial Fulfillment: If the market only partially reaches your limit price, your order may be partially filled. The remaining amount will remain active until the market meets your full limit.
• Check Fees: Be aware of any applicable trading fees that may affect your final transaction amount.

By utilising limit orders, you can make strategic decisions based on market conditions, allowing you to buy or sell cryptocurrency at a price that aligns with your goals. CoinMart’s platform provides flexibility, so whether you prefer limit orders or market orders, you can trade confidently and efficiently.

For further assistance or if you have any questions, feel free to contact our support team at support@coinmart.nl.