In the dynamic world of trading, having the right tools is crucial. One of the key strategies for managing risk effectively is the limit order. If you’re still unfamiliar with this powerful tool, keep reading to discover its benefits and learn how to place one on iFlux Global.
What is a limit order?
A limit order is a tactical method that enables you to set a specific price for buying or selling an asset, different from the existing market price. This order will only be executed when the market reaches your predetermined price or better. Therefore, it’s an excellent choice for traders who are not in a rush to buy or sell, or prefer a more calculated approach.
There are 2 types of limit order: Sell limit and Buy limit.
| Sell limit | Buy limit | |
| Timing | Place before price reverses downward, expecting it to rise to a level higher than the current price. | Place before price rebounds, anticipating it to drop to a level lower than the current price. |
| Price level | Wait to buy at the top. | Wait to buy at the bottom. |
Benefits of limit orders
- Price Control: You dictate the exact price at which you want to enter or exit a trade, avoiding the unpredictability of market fluctuations.
- Profit Maximization: If the market price rises above your buy limit price, you can benefit from increased profits.
- Risk Management: Should the market dip after your sell limit order executes, you can safeguard your profits effectively.
Example: Imagine BTC is currently at $75,000. If you anticipate a price surge, you might place a sell limit order at $80,000. Once BTC reaches this level, your order activates, potentially netting you a profit of $5,000.
By mastering limit orders, you will navigate the trading landscape with confidence and precision.
Market order and limit order
Almost every new trader opts for market order to execute their transactions. This type of order is ideal for those who want their trades to happen instantly at the best available price. However, if you have a specific trading strategy in mind, relying solely on market orders may not be the best approach.
So what are the differences between market orders and limit orders? Let’s explore them in detail.
- Execution speed:
- Market order: Executes immediately at the current price, ideal for traders who prioritize speed over price.
- Limit order: Executes only when the market reaches your specified price, which may take longer but offers more control.
- Price control:
- Market order: You accept the market price, which can be unpredictable.
- Limit order: You set the price you want to buy or sell.
- Use cases:
- Market order: Best for urgent trades.
- Limit order: Optimal for strategic trading.
How to place limit order on iFlux Global
Follow these steps below.
- Go to iflux.global. Navigate to the Installment Calculator, choose Limit.
- In Purchase Token (Buy), select the token you wish to buy and enter the amount.
- In Required Token (Sell), select the token you’ll use for the purchase. For instance, if you’re using DOGE to buy ENA, this will be reflected automatically.
- In Input Rate, we display the ENA/DOGE exchange rate. Enter the rate you are comfortable with.
- The upfront payment needed for this transaction will be calculated. Remember, you’ll need to make this payment using the required token (in this case, DOGE).
Note: You can set the upfront payment between 15% and 85% and adjust the installment duration from 10 days to 12 months.
Next, check the Total Interest and Periodic Payment. If everything looks good, click Apply Now.
Your new contract will appear in the My Installments section under the Limit tab.
In case the market price does not reach the set limit, you can cancel the contract, and your upfront payment will be fully refunded.
For details on limit order on iFlux, please visit: Token Installment Contract with Limit Price.
With our new limit order feature, iFlux strives to serve your trading needs more effectively. If you are looking for greater control over your transactions, try limit orders and experience the benefits of executing trades at your desired price points.
About iFlux Global
iFlux Global is a comprehensive cryptocurrency financial platform that provides innovative products and services beyond traditional exchange capabilities. It offers a unique Token Installment service allowing users to purchase crypto with minimal upfront payment, an industry-leading Daily Earn program with 12% APR, and a zero-fee trading environment with hourly price updates that create unique arbitrage opportunities.
