Advanced Trading: Bitcoin Market Orders
A Market order is a buy or sell order executed at the best available price. The advantage of this order is that it is simple, and the trade is fully executed nearly instantaneously at the best available price at that moment. The disadvantage is that you cannot fully guarantee the exact price of the order.
Market orders are used when executing a trade takes priority over the price at which the order will be executed. Since a market order is filled at the best price available at the time the trade is made, in fast-moving markets the price of a cryptocurrency may be significantly different from the last price quoted before the order was entered. A market buy order can end up being split across multiple sellers. This can result in multiple prices for some market orders.
Example of a Market Order
Imagine the bid-ask prices for Bitcoin are $10,000 and $10,250 with 5 Bitcoin available at the asking price, and a trader places a market order to buy 10 Bitcoin.
Then first 5 Bitcoin will execute at $10,250. The next 5 Bitcoin will fill at the best asking price, which in this example would be the next best price above the $10,250 paid for the first 5 Bitcoin.
How to Place a Market Order on NDAX (on the trading page)
• Login to https://ndax.io/
• Once you log in you will be redirected to your Dashboard
• Click TRADE on the left-hand side of the screen
• On the trade page, click BUY (Green button) or SELL (Red Button) on the right side of the screen
• Click the small GREY ARROW in the upper left corner of the screen to pick the CRYPTOCURRENCY/CAD pair
• Click on MARKET
• ENTER ORDER SIZE (how much you want to purchase or sell)
• Click PLACE BUY OR SELL ORDER
Market Order Video Tutorial (Purchasing Cryptocurrency)
Market Order Video Tutorial (Selling Cryptocurrency)
If you are based in Canada and looking for a Canadian Bitcoin exchange, then take a look at NDAX. NDAX is an easy-to-use, beginner-friendly exchange that can give you easy access to trade Bitcoin and other cryptocurrencies like Ethereum, Ripple, Litecoin, Cardano, Dogecoin, EOS and Stellar.