An order is a driving force behind the growth of a Cryptocurrency exchange. It helps in buying and selling the assets of users. Every order can be fulfilled by knowing the quantity demanded, the price offered and the validity.
Generally speaking, there are broadly three kinds of orders, Open order, Partially-filled order and a Filled order. Open order is a type of order which is yet to be matched with another participant. A Partially-filled order is where a partial order quantity is accepted by another participant. The remaining unfulfilled quantity will be displayed in the order book unless it is matched with another participant. On the other hand, a Filled order is an order that has been successfully matched with another participant.
Order matching will take place when participants get a price better than or equal to that specified in the order. Hence it depends upon the prevailing price level and time of order placement.
The different types of Orders to know during Cryptocurrency exchange platform development
Market order - More than the price, the quantity desired will be given a higher level of importance. Hence the input parameter for the market order is the quantity than the price.
Limit order - It considers both price and quantity as equally important in its parameter determination. It ensures that a participant gets a price better than or equal to that specified in the order.
Stop-Limit order - Apart from the quantity, a stop-limit order consists of two prices, a trigger price and limit price as its parameters. In case of a buy order, the current market price should be greater than the trigger price and in case of a sell order, the current market price should be lesser than the trigger price. Only when the above conditions are fulfilled, a stop-limit order is placed on the exchange or the matching engine. The order gets placed immediately if the trigger condition already exists in the exchange.
Stop Market order - It considers both the quantity and the trigger price as its parameters. The current market price should be less than the trigger price during a sell order and greater than the trigger price during a buy order. Fulfillment of these conditions would ensure that the order gets placed on the exchange or the matching engine.
Trailing Stop Loss order - It uses two parameters, trailing stop and the limit price difference. The trailing stop is the value used to trigger the order’s activation. The limit price difference is the gap between the peak price and the current price. If it is greater than the value mentioned in the trailing stop, the order will be triggered.
One cancels Other order - It allows two orders to be placed in the form of a buy limit and sell limit order. If at least one order is filled, the other one gets cancelled automatically. Both orders would have different approaches to drive the trading process.
Hence, select the right type of order for your platform by getting in touch with Blockchain App Factory, a reliable Cryptocurrency exchange platform development company.