This detailed guide explains several types of orders available on the platform and how they are executed. By understanding order execution happens on SnapEx, traders will be able to open, close and manage their trades in a more informed and efficient manner.
Order Types and Definitions
A trader may place an order on SnapEx app or web trader through the use of margin and leverage. The order can then either be automatically or manually closed (if the price hits Take-Profit or Stop-Loss levels) at a profit or loss.
For example, a trader may open a position with 300 USDT as margin and set the leverage at 50x. As a result, the trader has effectively opened a position equivalent to 15,000 USDT (equivalent to around 1 BTC).
Trading on leverage allows for higher potential profits but with higher risks and more handling fees incurred.
There are two types of orders that can be executed by a trader on SnapEx:
- Market Order
- Limit Order
Market orders are buy or sell orders that get executed immediately. The execution of a market order leads to a trader having an open position, whether they have decided to either buy or sell through SnapEx. The prices at which traders can buy or sell on the platform are called the Bid price and the Ask price.
Limit Orders are orders to buy or sell a certain amount of coins at a specified price. How do they work? If a trader wants to buy (long) BTC at a price of $16,000, when the current market price is $15,900, they can place a limit order that will only be fulfilled once the price they’ve set finally becomes available. As soon as that happens, the trader's buy (long) order will be filled at $16,000.
Conversely, with sell limit orders, if a trader wants to sell (short) BTC at $16,000 when the current market price is at $16,100, they can place a limit order that will only be filled once their specified price becomes available. In this case, it's at $16,000.
It's important to note the following when it comes to placing buy or sell limit orders:
- A Buy/Long limit order is based on the Ask price. The buy limit order will only be executed when the asking price is at the limit price specified in the order.
- A Sell/Short limit order is based on the Bid price. The sell limit order will only be executed when the bidding price is at the limit price specified in the order.
- Bid price and Ask price are never the same, as it represents the different prices that buyers (long) and sellers (short) are willing to trade.
- Limit orders will be executed based on Bid or Ask price, not the K-line.
Bid and Ask
The bid price is defined as the price where a trader can sell (go short) at any given moment, while the ask price is the price where a trader can buy (go long) at any given moment. Along with margin and leverage, either of these two values need to be specified in order to trade.
Stop-Loss orders can be described as "automated" orders. They become market orders as soon as the price reaches the value that any particular trader has specified. For traders, stop-loss orders can help minimize losses incurred in the face of falling prices.
For a stop-loss order example, imagine that 1 BTC is available at a current market price of $15,000, and you expect this price to climb even higher before the end of the month. If you want to protect yourself in case the price somehow dips, you could set a stop-loss order at, say, $14,000. This stop-loss order would then be executed once the price reaches the Stop-Loss value that you have preset.
You may also set a Take-Profit order, which is an order that's set above the current market price. It is also an automated order that gets executed only when the value that you've set reaches the value you have preset.
Take-profit can benefit traders by giving them the option to automatically close a position at profit - based on their own preferred preset - without needing to closely monitor the trade 24/7 and manually closing a position when needed.
It’s worth noting that all of the above - margin, leverage, stop-loss, and take-profit - needs to be set before a trader can open a position or place an order on the SnapEx platform.
When trading on SnapEx, your orders may be affected by slippage. It refers to slight yet sudden changes in an asset's price due to market volatility. When there's a difference between a trader’s anticipated price and the actual price at which it gets executed, that's called slippage.
Slippage can be either positive or negative. Positive slippage is what happens when the order execution price is more favourable than the price that was first requested by a trader. On the other hand, negative slippage happens when the order execution price is less favourable than that which was first requested by a trader.
These positive and negative slippages will ultimately be determined by the trader’s entry price and long or short positions.
Please note that slippage is a completely normal part of trading on any market, and the crypto market is no exception. It can happen in favor of either the traders or the platform itself.
With that said, SnapEx is designed to minimize slippage as well as platform spread through the use of the K-line weighted average to help set fair market prices for traders at all times. The K-line is an incredibly useful feature, especially for such a volatile market - the crypto market. It’s derived from prices pulled from three of the largest crypto trading platforms.
Speed of Order Execution
SnapEx is built to execute all orders as quickly as possible to the benefit of traders on the platform. The actual speed of order execution will vary mostly due to Limit-Orders set by traders or the levels of volatility that may affect both market prices and trading volumes.
In case any issues happen in regards to order execution, our Support teams are ready to answer any inquiries and provide any assistance wherever necessary.
SnapEx is centered around the needs of its users, so a wide array of orders are readily available to be executed quickly for the benefit of traders. The likes of slippage and spreads are minimized, and any orders placed on the platform get executed as quickly as possible. We recommend the following Help Center articles for further reading: