Advanced Trading Orders On Young Platform Pro
November 1, 2020
Market Orders on Young Platform Pro
In a previous article, we explained the main types of orders on advanced exchanges. Let’s now see step by step how to set these orders on the Young Platform Pro exchange.
A market order is an order that is executed immediately. The Market Order picks the cheapest selling price (Best ASK) from the order book to complete your purchase order. Conversely, it uses the highest purchase order available (Best BID) to complete your sales order.
Let’s recreate a scenario in which the LTC/EUR pair presents this series of sales orders:
Let’s say we want to buy 10€ of Litecoin. In this case, my market order will complete the sale orders, starting from the most convenient, that is the Best ASK.
In this case, the amount we want to buy matches perfectly with the amount sold in the Best ASK, so our order will simply fill it.
Let’s say we want to buy 100€ of Litecoin. Clearly, the Best ASK is not enough.
My purchase order will fill all sales orders starting with A and continuing with B, C and D until I use up all 100€ to get LTC.
My order from 100€ will then go to complete A, B, C and part of D, taking 15€ out of 33€ and leaving 18€ still to be filled.
100€ = A (10€) + B (15€) + C (60€) + D (15€)
The orders that will be filled after mine will start from what remains of D, while A, B, C and a part of D will disappear from the order book and will be stored in the Trade History.
The same mechanism happens when I want to sell. Obviously, my sell market order will be drawing from the first purchase order down to lower and lower prices.
Limit Orders on Young Platform Pro
The Total is the Euro equivalent of the amount of BTC (0.00556) that I entered at the limit price (1,000€). That is, it tells me how much is the actual total amount of BTCs that I am converting into euros at that price.
Advanced options for Limit Orders
On Young Platform Pro, you will also find advanced options for limit orders. These are a set of execution conditions that you can select to best manage your order.
- Good ‘Til Canceled (GTC): Your order will remain active until it is either filled or cancelled. This is the standard option used for limit orders.
- Day Only: Your order will remain active until 00.00 UTC.
- Fill or Kill (FOK): The order must be completed in full. Otherwise, it will not be filled at all.
- Immediate or Cancel (IOC): The order is filled immediately (fully or partially).
Advanced options for Stop Orders
Let’s remember that stop orders are mainly used to avoid big losses or to catch a possible profit opportunity in case of a resistance line breaks.
Young Platform Pro provides two types of Stop orders:
- Stop Market Order
- Stop Limit Order
Stop Market Order
It triggers when the stop price is reached.
Generally the Stop Order is used by experienced traders to make sure they enter after the resistance has broken.
In this sense, even if they are buying at an unfavourable price, they are convinced that they will still gain because – once the resistance is broken – the price may rise profitably.
It triggers when the stop price is reached.
Generally the Stop Order is used by experienced traders to make sure they exit after the support breaks.
In this sense, even if they are selling at an unfavourable price, they are convinced that they will safeguard most of their funds in the event of a sudden fall in price.
Stop Limit Order
When you place a stop-limit order, you set two prices: the stop price and the limit price.
The stop price is what the cryptocurrency must reach for the order to be triggered.
The limit price is how much you are willing to pay for the purchase or how much you will receive in case of sale.
The order will then be filled in the price range between the Stop price and the Limit price.
You can only set purchase orders at prices higher than the market price. The limit price must also always be slightly higher than the stop price. Once the stop price is exceeded, the limit price is the maximum price you are willing to pay.
You can only set sales orders at prices lower than the market price. The limit price must also be set lower than the stop price, as it indicates the minimum price at which you are willing to sell to protect yourself against further losses.
Once triggered, the Limit Order is immediately filled in the given range, buying or selling at the most convenient price at that time.
The market price is 300 €
→ I set the Stop price at 350 €
→ I set the Limit price at 355 €
The exchange fills my order at the most convenient price between 350€ and 355€
If by chance this range is no longer available (e.g. a very large order arrives that manages to complete all the orders in the range where I want to enter before I can place the order) my Stop Limit is cancelled.