What order types are available on CryptoSasa? – CryptoSasa

Order Types

CryptoSasa offers a few ways to execute trades on our exchange. The options include:

Market
Limit
Stop - Market
Stop - Limit
Trailing - Stop
Trailing - Stop - Limit.

Market

A market order executes immediately. All you have to do is enter how much you want to spend to either buy or sell an asset on CryptoSasa. This order is immediately placed on the exchange and filled at the best available price on the orderbook as a taker order.

For example, set a market order to spend KES. 10,000 to buy BTC. A market order will spend KES.10,000 and give you as much BTC as possible at the best available price. The entire order will be filled, starting from the best offer to sell BTC. Market orders can fill at a range of prices through the orderbook.

This order type is available for all crypto to fiat pairs.

Learn more on how to buy/sell with Market order

Limit

A limit order lets you define both the amount and price at which you wish to buy or sell an asset.

You will need to input two of three fields including (1) price, (2) amount in crypto and (3) total fiat amount of an order. Using a limit order means your order will only be completely filled when it either crosses the orderbook for the full amount to be traded or when an opposite order matches against it.

For example, set a limit order to sell 1 BTC at a price of KES.1,000,000 per BTC. That limit order will be sent to the exchange and will be executed either because:

It crossed the orderbook and matched a bid (buy order) to buy BTC at or above KES.1,000,000 per BTC or;
Another trade later decides to place an order that is willing to buy BTC at or above KES.1,000,000 per BTC.

This order type is available for all crypto to fiat pairs.

Stop-Limit Order

A stop-limit order is an order to buy or sell a crypto assets that combines the features of a stop order and a limit order. Once the stop price is reached, a stop-limit order becomes a limit order that will be executed at a specified price (or better).
A stop order, also referred to as a stop-loss order, is an order to buy or sell assets once the price of the assets reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price.

Please note;

Stop-limit orders are a conditional trade that combine the features of a stop loss with those of a limit order to mitigate risk.
Stop-limit orders enable traders to have precise control over when the order should be filled, but they are not guaranteed to be executed.
Traders often use stop-limit orders to lock in profits or limit downside losses.

A stop-limit order requires the setting of two price points:

Stop: The start of the specified target price for the trade.
Limit: The outside of the price target for the trade.

A time frame must also be set, during which the stop-limit order is considered executable.

The primary benefit of a stop-limit order is that the trader has precise control over when the order should be filled.

The downside, as with all limit orders, is that the trade is not guaranteed to be executed if the stock/commodity does not reach the stop price during the specified time period.

The stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.

Stop-limit orders can be helpful, though, if you have patience and are confident that a stock price will go back up. When prices are moving quickly, some traders would rather wait it out than accept a sudden large drop in price. If you're willing to accept the risks, this can be an effective strategy.

Stop-Market Order

A stop-market order is a standing order to buy/sell crypto assets if the price reaches a certain level. It is meant to protect you from loss if the market moves too far in the wrong direction. These can be orders either to buy or sell, but no trade takes place unless the price hits that trigger. When the price is reached, the stop order becomes a market order.

Alternate names: stop-market order, stop order, stop-loss order, stop-loss market order

Successful trading is all about maintaining proper risk/reward, or minimizing your losses and maximizing your gains. Every professional trader has a price in mind for when a trade has gone too far south and they need to get out. Stop-market orders make that threshold official and automatic. This saves you from having to watch the market at all times to curb your losses.

A sell-stop order will be placed below the current market level to prevent too much loss on a sale, while a buy-stop order will be placed above the current market level to grab a stock before it becomes too expensive.

How a Stop-Market Order Works

Suppose you buy a stock at KES.300 and place a stop-market order to sell at KES290. Eventually, major news is released about the stock. All of the buyers pull their bids from around the $30 region. No one is willing to buy, except at KES260, where someone still has an order to buy at that price.

Once the price drops below KES290, your stop-loss market order will seek out anyone willing to buy at KES.290 or below. Since the nearest buyer is at KES.260, that is where your stop-loss market order will fill. In this case, you were only expecting to lose KES.10 per share but instead lost KES.40. This is called "slippage." It's a common issue with any type of market order.

Slippage is less likely to occur if you avoid day trading volatile assets or ones that have very low volume. It's also wise to avoid holding positions during major news releases related to the asset you're trading, as such news events can cause significant slippage.

Although slippage can lead to more significant losses than you hoped, the market order still gets you out of your position and protects you from further potential losses. Slippage doesn't occur all the time. Under normal conditions, a stop loss market order will get the trader out at the price expected.

Stop-Market Orders vs. Stop Limit Orders


Stop-Market Order	Stop-Limit Order
Only executes if the market reaches the stop price or worse	Only executes when the market hits the stop price but stays better than the limit price
Will always execute if the market hits that price or worse	Will not execute if either condition is not met
Good for stopping further losses on a trade	May not prevent major losses on a trade
Losses can be larger than you expect	Good strategy if you expect the price to bounce back, but risky

Trailing stop order

A trailing stop order is similar to a stop-market order. There's one twist with a trailing stop order: the stop level can move in your favor. Instead of being set at a specific price, a trailing stop level is set compared to the current price.

For example, a trailing stop order to sell a long position could be set to trigger when the price drops by KES.10. If the stock starts at KES.500, the initial stop level is KES.490. If the stock price rises to KES.550, then the stop level rises to KES.540.
A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trade if the price changes direction by a specified percentage or amount.

KEY TAKEAWAYS

A trailing stop is an order type designed to lock in profits or limit losses as a trade moves favorably.
Trailing stops only move if the price moves favorably. Once it moves to lock in a profit or reduce a loss, it does not move back in the other direction.
A trailing stop is a stop order and has the additional option of being a limit order or a market order.
One of the most important considerations for a trailing stop order is whether it will be a percentage or fixed-amount and by how much it will trail the price.

Trailing stop-Limit-order

A trailing stop limit is an order you place with an exchange. It places a limit on your loss so that you don’t sell too low.

For example, say you have a stock trading at KES1000 and you put a stop loss at KES.900 and a stop limit at KES. 850. If the stock suddenly crashes to KES.700, making your sell order at KES.700, the broker wouldn’t execute the stop loss because it is below your limit of $8.50. So the stop limit protects against fast price declines.

In a stop loss situation, your broker would’ve just sold your stock as soon as it crossed below KES.900, in this example you would’ve sold at KES.700.

The trailing stop is preferred over the stop limit because there’s protection against very fast swings. Since there’s a trailing stop set for the end of day, the presence of these cases are already much more minimized. At the end of the day, a loss is a loss.

Losing a few more percentage points than 25% (because of no limit), is fine in this case. It’s much better than the alternative, which is a stock that skips under the limit and keeps crashing. That’s a much worse situation than losing a couple basis points.