When placing an order on the Coinmetro Exchange Platform, you may have noticed that you will have the option to place market orders, limit orders, and for advanced traders, stop orders.
Market orders are the most basic buy and sell trades, where a user places a trade order which then will be filled at the price this is currently going for in the book. When placing a market order, you are opting for whatever price the asset is currently going for, so the trade will be filled rather quickly. For example, if placing a market sell order, this means that the asset will sell for whatever a buyer is bidding for in the books. Please be mindful that the price displayed before executing the order may not be the price that your asset sells for.
Coinmetro offers the option to apply price protection on your market order when checking the 'max/min' slider. This will ensure that your market order is not filled below or above the specified price. If you would like more fine-grained control of your market order you can use this setting. Please note, the possibility to use this feature is dependent on liquidity.
Following our recent platform update, our effort to improve your trading experience is continuing with the introduction of a new Price Warning feature. The Slippage Warning Dialog is there to show you in real time if any of your orders could lose more than 3% due to slippage. This is an important component of your trading arsenal, as it will warn you immediately before confirming orders. Use this to your advantage, so you can be aware, act fast and stay on top of the markets.
The Price Warning Dialog shows up if the user submits an order which could lose more than 3% due to slippage. The mechanism works like this:
No warning is shown when slippage is under 3.00%
It shows a green warning from 3.00% to 4.99%
It shows an orange warning from 5.00% to 9.99%
It shows a red warning from 10.00%+
The calculation takes the size of the order into account and adjusts the slippage warning percentage accordingly
It will appear when placing a new market/limit order or editing an open order
It will appear on both the Exchange and Margin platforms.
What does it not do:
Take spread into account (for now)
It will not appear when doubling or closing a % of Active Positions on Margin (for now).
Please note that Coinmetro is not responsible for any slippage when a market order is executed. When placing a market order, you are doing so at your own risk. If you wish to avoid slippage, we recommend placing a limit order.
Limit orders are advantageous as they give users more control over the buying and selling prices of their trades. When placing an order to buy an asset, a maximum acceptable purchase price must be selected. When selling an asset, a minimum acceptable sale price must be selected.
A limit order when buying an asset ensures the user that the buy price will not exceed any higher than the amount selected. When placing a sell limit order, this of course would mean that the sale price would not execute any lower than the amount selected.
This gives users more control over their orders placed, however, please be mindful that limit orders are two-sided, meaning that another user would need to buy or sell at your specified price in order for it to fill.
A stop order, or 'stop-loss' order, is an order to buy or sell an asset once the price of the asset reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price.
Stop orders can be used to manage markets moving against you. For example, if you were to set a stop order to sell BTC at a minimum price of 40,469, it will automatically be sold at market price once the price of BTC reaches 40,469.
It is possible to combine limit and stop orders, to automatically place a limit order when the stop price is reached. On Coinmetro's Margin Platform, you can set a stop price for your positions, which will automatically close your positions at market price, if the latest traded price reaches the stop price.
Coinmetro’s Demo Platform is always available if you would like to practice without risk. Please note that this article is not to be seen as trading or financial advice. It is for educational purposes only.