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How does GTC expiration affect the price of cryptocurrencies?

Gerry PalomarMay 05, 2022 · 3 years ago3 answers

Can you explain how the expiration of Good 'Til Canceled (GTC) orders affects the price of cryptocurrencies?

3 answers

  • May 05, 2022 · 3 years ago
    When GTC orders expire, it can lead to a decrease in demand for a particular cryptocurrency, which may result in a temporary drop in its price. This is because GTC orders represent potential buy or sell orders that are waiting to be executed. When these orders expire, it means that the buyers or sellers who placed them are no longer interested in trading at the specified price. As a result, the overall trading volume and liquidity for that cryptocurrency may decrease, leading to a potential price impact.
  • May 05, 2022 · 3 years ago
    GTC expiration can have a short-term impact on the price of cryptocurrencies. When GTC orders expire, it can create a sudden shift in the supply and demand dynamics of the market. If a large number of GTC orders expire at the same time, it can lead to increased selling pressure or decreased buying interest, which may cause the price to decline. However, it's important to note that the impact of GTC expiration on the price of cryptocurrencies is usually temporary and can be influenced by various other factors in the market.
  • May 05, 2022 · 3 years ago
    When GTC orders expire, it can create opportunities for traders who are actively monitoring the market. They can take advantage of the potential price fluctuations that may occur due to the expiration of these orders. For example, if a significant number of GTC sell orders expire, it may create a buying opportunity for traders who believe that the price will rebound after the temporary drop. However, it's crucial to have a thorough understanding of the market conditions and conduct proper analysis before making any trading decisions based on GTC expiration.