Limit Orders

Limit Orders

The process for setting Limit Orders on OmniTrade is similar to opening a standard market order, however for Limit Orders there is an additional step required to set the Entry Price.

With standard market price orders, the price at which the trade is executed is derived from the Market Price at the time that the order is set, however, for limit orders the user is able to specify a particular price at which they would like the order to execute. This can be useful in managing risk and maximising profits as the order will not become live until the Market Price achieves the pre-set target.

For example if the price of ETH is currently $1965.00 and you believe that it will continue to rise through to $2000 before correcting down to $1800 then you could set a Short Limit order with an Entry Price of $2000. This will ensure that once the market price rises to $2000 or above then the specified short order will be placed.

The Entry Price for a Limit Order is set in the price box that will appear when the Limit Order selector is selected. The current Market price (Mark) is shown on the right hand side and the user can enter the order price on the left. Note that for Long Orders the order price must be set to below the current Market Price and for Short Orders the order price must be set above the Market price. Depending on the market conditions there may be a spread between the market buy price and the market sell price this will occur when there is high volatility in the market. Under these circumstances the Market Price shown for long orders will be higher than those shown for short orders.

Caution: Limit orders and triggers are useful trading tools for Risk Management however they are not guaranteed to execute, this can occur in a few situations including but not exclusive to

  • The market price which is an aggregate of exchange prices did not reach the specified price

  • The specified price was reached but not long enough for it to be executed

  • No keeper picked up the order for execution

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