What is the price that we talk about in trading?
First, let's take the BTC/USDT trading pair as an example. The price we usually see can be interpreted as, for example, if the trader is buying/selling BTC, this price represents the amount of USDT that the trader has to pay or receive to buy or sell 1 BTC. Similarly, use the OCE/VET trading pair as an example, when a trader is buying/selling OCE, and the price in this trading pair can be understood as the amount of VET that the trader has to pay or receive to buy/sell 1 OCE.
A limit order is an order in which a trader places an order at a fixed price. This fixed price is always lower in buy limit order or higher in sell limit order than the current market price. Under normal circumstances, limit orders will not be filled immediately, that is, If a trader selected "limit orders", the orders will be filled only when the market price reaches or exceeds the limit price. That is, the market price should equal to or better than the fixed price.
When the current limit price deviates too much from the market price, it is not effective to order filling.
As shown by the red arrow in the figure below: The limit price is entered here. This price is specified by the trader.
If you want to buy 1 BTC at the price of $25,000 using the BTC/USDT trading pair, which is below the current market price of $27,700, you have to place a limit buy order, entering a fixed price of $25,000 in the price column and 1 in the BTC amount column. Then the system will help you calculate how much USDT you need to spend. In this example it would be $25,000. Once this limit order request is submitted, it remains in the order book until the market price falls and a sell order of equal or lower price can match it.
If you want to sell 1 BTC at the price of $28,000, which is above the current market price of $27,700, you have to place a limit sell order, entering a fixed price of $28,000 in the price column and 1 in the BTC amount column. Then the system will help you calculate how much USDT you can get. In this example it would be $28,000. Once this limit order request is submitted, it remains in the order book until the market price rises and a buy order of equal or higher price can match it.
Note: Please try not to make a limit order with a price far away from the current market price, it may not be traded. You will have to cancel it and place a new order with the price closer to the current market price.
A market order is an order placed by a trader at the best available price in the current market. Generally, market orders are executed immediately at the current market price and are usually used to buy or sell quickly. Market orders rely on market liquidity (current limit orders in the market) to buy or sell quickly. As a result, in most cases, traders who place market orders pay higher fees as takers (as opposed to makers).
As the red arrow shows bellow: When a trader selects "market price" when placing an order, the trader will not be able to modify or edit the price. The transaction price will be determined by the market price. Because market price trading depends on optimal price and liquidity in the market, market orders will be executed immediately without a guarantee of execution price. Traders need to think carefully before making a move.
If you want to buy BTC instantly with 10,000 USDT, you can place a market buy order using BTC/USDT trading pair. As shown in the picture, when selecting "Market", the “Price” can not be edited or modified, because it will be determined by the market. You can only enter the USDT amount you want to trade in the “Total” column, in this example it would be 10,000 USDT. Once this market order request is submitted, the market will prioritize your order execution based on liquidity and the best price. Eventually, the system will calculate how much BTC you can get. You can know the amount and the average selling price by checking the order history.
If you own 0.08 BTC and want to trade into USDT instantly, you can place a market sell order using BTC/USDT trading pair. Same as above, the “Price” will be determined by the market. The amount of USDT obtained by selling 0.08 BTC will be based on the current market price. You can know the amount of USDT obtained and the average selling price by checking the order history.
Note: Market orders can not be canceled, it will be executed immediately without a guarantee of execution price. Traders need to think carefully before making a move.