What are the advantages and disadvantages of using limit and market orders in the digital currency industry?

1 answers

• Nov 24, 2021 · 3 years ago
  Limit orders and market orders are two common types of orders used in the digital currency industry. Limit orders allow traders to set a specific price at which they want to buy or sell a digital currency. This can be advantageous as it gives traders more control over their trades and allows them to potentially get a better price. However, one disadvantage of limit orders is that they may not be executed if the market price does not reach the specified limit. On the other hand, market orders guarantee immediate execution but do not offer price control. Traders using market orders may experience slippage, which is the difference between the expected price and the actual execution price. In summary, both limit and market orders have their pros and cons, and the choice between the two depends on the trader's specific needs and preferences.
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