How to use Market order
Market order (pic 1)
It is mainly used to make a quick transaction.
There are only two fields in this type of order:
In the field “Quantity” you need to specify only the amount for which you want to buy.
Or the amount you want to sell. The system does the rest for you.
You do not need to specify anything in the “Price” field, the best price will be used automatically. (pic 2)
If you are going to buy, then the most favorable price of all sales orders for you will be 167.1 (pic 2)
If you are going to sell, then the most favorable price of all purchase orders will be 166.9 (pic 2)
If you are selling, then he will find the counter bid that is the most profitable for you and will sell your coins at the most expensive price from all the orders available on the general list for this currency pair.
Creating a Market order for sale, you kind of say, “Here is my 1 BTC, I sell it as expensive as possible and right now!”
If you buy, then the market order will find the lowest price for the coin of interest to you from the general list of orders that are currently active on the exchange.
Creating a Market order, you kind of say, “Hey, my 1000 dollars, I buy BTC on them at the lowest price that you now have!”
When creating a Market order, carefully look - is there a necessary amount in the opposite direction in the general list of orders and at what price the transaction will be executed.
How to see it?
The screenshot shows that we are going to sell 5 ETH using the Market order.
We look above at the list of active orders in the “order book” module.
Since we are going to SELL, we need to find out who currently wants to BUY, and how much they want to buy.
In the first line we see a buy order for 0.3373 (rounded) ETH at a price of 167 USD. (pic 3)
Since we sell as much as 5 ETH, we won’t be able to sell everything to the first buyer, he will take only 0.3373 ETH from us. Now we need to sell our balance of 4.6627 ETH. (pic 3)
We can sell this balance to the second buyer, who is second from the top and wants to buy 7.166081 ETH at the price of 166 USD.
Thus, if such a price is suitable for us, we will sell our ETH at the best price of 167 USD / ETH, and we will sell the remainder a little cheaper at 166 USD / ETH. (pic 3)
As we see at the moment, these are the most favorable prices for sale. This is how the Market order works.
The orders created by the Market do not appear in the list of open orders, because they are executed at the same moment when you press the BUY or SELL button.
They can be used when you need to make a quick purchase (for example, you see that everyone on the market is starting to buy BTC and the price is rapidly going up. If you want to quickly buy BTC to catch this growth, use a market buy order.
Also, if you see the beginning of a price drop, and want to get rid of a cheaper coin faster - sell it through a Market order.
Use a market order based on your personal trading strategy.