What are the differences between market orders and limit orders when it comes to trading cryptocurrencies? Please select the correct statements.

1 answers

• FauziahOct 15, 2021 · 4 years ago
  Market orders and limit orders are two different types of orders used in cryptocurrency trading. Market orders are executed at the current market price and guarantee immediate execution, while limit orders allow traders to set a specific price at which they want to buy or sell a cryptocurrency. Market orders are suitable for traders who want to execute their orders quickly and are willing to accept the current market price. These orders are executed immediately and ensure that the order will be filled. However, the actual execution price may differ slightly from the expected price due to market fluctuations. On the other hand, limit orders allow traders to set a target price and wait for the market to reach that price before executing the order. These orders are not executed immediately and may not be filled if the market price does not reach the specified limit. Limit orders provide more control over the execution price and can be used to take advantage of price fluctuations. In summary, market orders offer speed and certainty of execution, while limit orders provide control over the execution price. Traders should consider their trading goals and strategy when choosing between the two types of orders.
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