What is a Market Order? What is a Limit Order?

What is a Market Order?

Market Order is an order to buy or sell cryptocurrencies instantly executed at the available market price. When the buyer and seller place an order, the buy or sell order will match the market price. The sell/buy market will match the best available price on the order book. Therefore, market orders are often used when the user feels that the current market price is the best to trade. When placing this order, the user wants the transaction to happen immediately with the best price at the current time.

What is a Limit Order?

This is an order to buy or sell a cryptocurrency at a determined price or better than the current market price. Specifically, the order will only be matched when the market price touches the price users placed or maybe at a better level. Therefore, this type of order is suitable for investors who are not in a hurry to buy/sell.

How to place Market Order and Limit Order on Nami Exchange mobile app?

Step 1: At the toolbar below the main interface, users select Exchange

Step 2: Select Limit (1) or Market (2) order type, enter the Amount of token, then Buy/Sell.

How to place Market Order Limit Order on website Nami Exchange?

Step 1: At the home screen, users select Product then select Spot Trading:

Step 2: At trading interface, users select Market (1) or Limit (2) order type, then enter the Amount of token and Buy/Sell:

When to use Market Order and Limit Order?

Market Order

Market Order is very convenient in case users want to trade at the current price. In other words, Market orders should only be used if users need to buy/sell immediately.

Limit Order

Limit Order is often used when users are not in a hurry to buy/sell. Unlike Market Order, Limit Order is not executed immediately, users need to wait until the market price reaches the bid/ask. Limit Order allows users to buy and sell at better prices. Users should divide buy/sell orders into smaller limit orders to average the price.