Different Types of Spot Orders
#Basic
#Spot
#Beginners
The MEXC platform offers four types of spot orders: Limit Orders, Market Orders, Stop-limit Orders, and OCO (One-Cancels-the-Other) Orders.
1. Limit Order
With limit orders, users can set the order price, and the orders will be executed at the specified order price or a more favourable price.
When placing a limit order, if there are existing orders in the order book that match the user's specified order price, the limit order will be immediately executed at the best available price. If no matching orders are present, the limit order will remain in the order book until it is eventually executed or until the user cancels it.
Let's use MX as an example:
Imagine you currently have 10 MX tokens in your account. The current market price for 1 MX is 2.94 USDT, and you plan to sell 10 MX tokens at a price of 3 USDT each.
Below the K-line chart, in the "Spot" tab, select [Limit]. In the right section, enter the selling price (3 USDT) in the "Price" field and the selling amount (10 MX) in the "Amount" field. You will notice that this order will result in a final trade amount of 30 USDT. Click [Sell MX] to complete the limit order for selling your MX tokens.
If you plan to buy MX tokens, in the left section, you can enter your buying price and buying amount in the "Price" and "Amount" fields. Then, click [Buy MX] and wait for the limit order to be executed.
Due to the current market price of MX being 2.94 USDT and the lack of liquidity at 3 USDT in the market, it might take some time for the limit order to be executed.
During the waiting period, if you decide not to wait any longer, you can click on [Cancel] to terminate the trade. While waiting for the limit order to be executed, your MX tokens will be locked, making them unavailable for other trading activities. Once you click on [Cancel] for the order, the locked MX tokens will be released, freeing them up for use in other trading operations.
2. Market Order
Market order allows users to quickly execute trades at the current market price. With market orders, users do not need to set the price, as they only need to specify the quantity.
It is important to note that when market prices are highly volatile, using a market order may result in the final execution price being different from the initial price shown to the user. For example, if the current price of MX is 2.94 USDT and you place a market order for 294 USDT to buy 100 MX tokens, the price may fluctuate between the time when you clicked to buy and when the order is executed, causing the actual quantity of MX tokens to be different from 100.
Let's use MX as an example to illustrate how to place a market order:
Imagine you want to sell 10 MX tokens at the market price. Click on [Spot] and select [Market]. In the right section, enter the selling amount (10 MX) in the "Amount" field and click [Sell MX] to complete the market sell order.
If you want to buy MX tokens at the market price, in the left section, enter the amount of USDT you wish to spend in the "Amount" field and click [Buy MX] to complete the market buy order.
Market orders are frequently employed by traders who aim for quick entry or exit strategies, as these orders can be quickly executed at the market price.
3. Stop-Limit Order
With stop-limit orders, users can set trigger prices along with buying/selling amounts and quantities. When the market price reaches the trigger price, the system will place a limit order at the specified price.
As usual, let's use MX as an example:
Imagine that the current market price of MX is 2.94 USDT and you anticipate that the price of MX will continue to rise after surpassing 3 USDT. As a result, you intend to sell the 10 MX tokens you own at a price of 3.5 USDT.
In the "Spot" tab, select [Stop-limit]. In the right section, enter the trigger price (3 USDT) in the "Trigger Price" field, the selling price (3.5 USDT) in the "Price" field, and the selling amount (10 MX) in the "Amount" field. Then, click [Sell MX] to complete the order.
While waiting for the order to be executed, your MX tokens will be frozen, making them unavailable for other trading activities. At any time before the order is executed, you have the option to cancel the order by clicking [Cancel].
Similarly, if you anticipate that the price of MX will continue to decrease after falling below, for instance, 2.8 USDT, and this presents an opportunity for you to buy in at a lower price, you can choose to use the stop-limit order on the left. Set the corresponding trigger price along with buying price and amount. When the market price reaches the trigger price, the order will be placed on the order book.
If you want to learn more about stop-limit orders, you can read about them here: What is a Stop-Limit Order?
4. One-Cancels-the-Other (OCO) Order
OCO (One-Cancels-the-Other) orders, also known as selective entrustment orders, combine a stop limit order and a limit order into a single OCO order for placement. When the stop limit order is triggered, or when the limit order is executed / partially executed, the other order is automatically canceled. If either order is manually canceled, the corresponding order is simultaneously canceled as well.
OCO orders aim to secure better execution prices while ensuring buy/sell fulfillment. In spot trading, investors can utilize this trading strategy when they wish to set both a stop limit order and a limit order simultaneously.
At the time of writing, OCO orders are only supported for certain tokens, including BTC. We will use BTC as an example:
Suppose the current price of BTC is $43,400, and you want to buy when the price drops to $41,000. However, if the price of BTC continues to rise, and you believe that even after surpassing $45,000, it will continue to rise, you want to be able to buy when it reaches $45,500.
On the trading page for BTC, under the "Spot" section, click [ᐯ] next to "Stop-limit," and select [OCO]. In the left section, enter 41,000 in the "Limit" field, 45,000 in the "Trigger Price" field, and 45,500 in the "Price" field. Then, input the buying amount in the "Amount" field and click [Buy BTC] to set the order.
By using OCO orders in their spot trading strategy, investors can simultaneously set trigger prices for TP/SL as well as a limit price without having to set up two separate orders. This can save time and effort, enhancing trading efficiency. If you would like to learn more about One-Cancels-the-Other (OCO) orders, you can read about them here: What is a One-Cancels-the-Other (OCO) Order?
5. How To Check Order History
To check your order history, click on [Orders] at the top right corner of the official MEXC website and select [Spot Orders]. Here, you can access records for all your spot orders and trades.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.