Spot Order Type Description Announcement

To facilitate users in better conducting spot trading, the exchange provides a detailed explanation of the two main types of spot orders—market orders and limit orders.

I. Limit Order

Definition
A limit order is an order in which users can set their own buy or sell price, and the order will only be executed when the price reaches the set value. The trade will not be executed immediately at the market price; it will only be executed when the market price matches the user’s set price.

Operation Instructions

• Buy Limit Order: Users set a buy price that is lower than or equal to the current market price. The system will automatically execute when the market sell price reaches this price.
• Sell Limit Order: Users set a sell price that is higher than or equal to the current market price. The system will automatically execute when the market buy price reaches this price.

Advantages and Disadvantages

• Advantages: Users can control the execution price, avoiding undesirable prices due to market fluctuations.
• Disadvantages: If the market price does not reach the set limit, the order may not be executed for a long time or may not be executed at all.

Notes
Even if the limit order reaches the set price, it may still not be executed. Execution depends entirely on market conditions and overall liquidity. In some cases, your limit order may be only partially executed or not executed at all.

II. Market Order

Definition
A market order is an order in which users buy or sell assets immediately at the best available market price. The system automatically matches the best-priced sell or buy orders in the market.

Operation Instructions

• Buy Market Order: Users enter the quantity to buy. The system will automatically execute orders at the best available sell prices sequentially until the buy quantity is completed.
• Sell Market Order: Users enter the quantity to sell. The system will automatically execute orders at the best available buy prices sequentially until the sell quantity is completed.

Advantages and Disadvantages

• Advantages: Fast execution, suitable for users who want to complete transactions immediately.
• Disadvantages: The execution price cannot be controlled. In highly volatile markets, the final price may differ from expectations.

Notes

• Market orders cannot set a price and can only be executed at market prices.
• In markets with low liquidity, large market orders may cause slippage, resulting in execution prices differing from expectations.

III. Trading Recommendations

• Risk Control: Choose the order type according to personal trading strategy.
• Fund Management: Avoid large market orders in low-liquidity markets to prevent adverse effects.
• Market Observation: In highly volatile markets, prioritize limit orders to control execution prices.