When trading cryptocurrencies on KuCoin Spot markets, understanding the different types of orders you can make will empower you with the knowledge to make effective, efficient trades. Each order type available via KuCoin Spot serves a different purpose and caters to various trading strategies.
This article will explore the two primary order types available on the KuCoin Spot Market:
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Market Orders
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Limit Orders
As well as advanced orders such as:
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Stop Market
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One-Cancels-the-Other (OCO)
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Trailing Stop Orders
Here's everything you need to know about trading on the KuCoin Spot Market.
What Are Market Orders?
Market orders are the simplest and most straightforward order types you can make on KuCoin Spot markets. These orders involve buying or selling an asset at the current market price. When you place a market order on KuCoin Spot, it is executed immediately, ensuring near-instant order fulfillment.
However, the exact price at which the order is executed may differ slightly from the displayed market price due to market fluctuations and liquidity conditions.
For example, if you place a market order to buy 0.01 Bitcoin (BTC) when the current market price is $35,000, your order will be executed immediately at the best available price. The actual price you pay could be slightly more or less than $350 (0.01 BTC * $35,000), depending on the exact moment the order is executed. market orders guarantee execution but not a specific price.
How Do Market Orders Work on KuCoin Spot?
Market orders are executed at the current market price. When you place a market order to buy, it means you are willing to purchase the asset at the best available price in the market. The order is filled immediately by matching it with existing Sell Orders.
Similarly, when a market order to sell is placed, you indicate your willingness to sell the asset at the current market price, and the order is executed promptly by matching it with existing buy orders.
The prevailing market price for an asset sold or bought with a market order may change slightly from the displayed market price due to market conditions and liquidity. market orders are best when prioritizing speed and execution certainty over specific price levels.
To enter the Spot market and start trading, go to the Trade drop-down menu on the top left of the page and select Spot Trading.
KuCoin Homepage
Here's how to get started with spot trading on KuCoin.
How to Make a Market Order on KuCoin Spot
You can create market orders via the order interface within KuCoin Spot trading.
Setting a Market Order
What Are Limit Orders?
Unlike market orders, limit orders allow you to set specific price levels at which you are willing to buy or sell an asset on KuCoin Spot markets.
When placing a limit order to buy, you can set the maximum price you are willing to pay for an asset.
Conversely, when placing a limit order to sell, you will set a minimum price you are willing to accept. limit orders give you more control over the price at which assets will be exchanged but may not guarantee immediate fulfillment if the market does not reach the specified price level.
For example, if the current market price of Ethereum (ETH) is $2,000, but you believe it will drop, you might set a limit order to buy 1 ETH at $1,800. Your order will only be executed if the market price of ETH drops to $1,800 or lower. If the price never drops to $1,800, your order will not be executed. limit orders guarantee a specific price but not execution.
How Do Limit Orders Work on KuCoin Spot?
When placing a limit order to buy, you can set the maximum price you are willing to pay for the asset. The order will only be executed if the market price reaches or falls below the specified limit price.
On the other hand, when placing a limit order to sell, you can set the minimum price you are willing to accept for the asset. The order will be executed if the market price reaches or exceeds the specified limit price.
In short, a limit order allows you to specify the exact price at which you'd like to sell or buy an asset.
How to Make a Limit Order on KuCoin Spot
You can create limit orders via the order interface on the KuCoin spot market.
Setting a Limit Order
Advanced Orders
KuCoin Spot markets also offer a range of advanced order types that provide additional flexibility and customization options. These include Stop Limit orders, Stop Market orders, One-Cancels-the-Other (OCO) orders, and Trailing Stop orders. These orders are designed to meet specific trading strategies and risk management needs.
Note that various advanced orders can be made in other KuCoin markets, such as KuCoin Margin trading advanced orders. This article focuses on the advanced orders available via KuCoin Spot markets.
Stop Market Orders
Stop market orders execute a market order when the asset hits the specified stop price. In the context of stop market orders, a stop price refers to a specific price at which a stop or stop-based order is triggered. The Stop Price acts as a threshold or activation level that initiates the execution of the order.
Once the stop price is reached, a stop market order is converted into a market order and is immediately executed at the best market price.
For example, if you own 1 Bitcoin (BTC) bought at $30,000, and the current market price is $40,000, you might set a stop market order to sell at $35,000. If the market price drops to $35,000 or lower, your order is triggered, and your BTC is sold at the best available price. This price could be slightly more or less than $35,000. Stop market orders can limit losses but do not guarantee a specific price.
You can choose whether you want to set the stop price above or below the current market price – in the case of a Stop Buy order, you will set the stop price above the current market price. In the case of a Stop Sell order, you will set the stop price below the current market price.
How Do Stop Market Orders Work on KuCoin Spot?
A stop market order is relatively simple compared to more complex order types available on KuCoin Spot. In simple terms, a stop market order is a market order triggered by an asset's price either increasing or decreasing to a certain level.
Unlike stop limit orders, which trigger limit orders, stop market orders immediately convert into market orders once the stop price is reached. The execution of a stop market order is guaranteed, but the exact price at which the order is filled may vary due to market fluctuations and liquidity conditions.
Stop market orders help limit potential losses when the market goes against you. You can also participate in trading strategies by entering positions when the market breaks through key levels or set up stop buy orders to enter positions as resistance levels are surpassed.
How to Make a Stop Market on KuCoin Spot
You can create stop market orders via the order interface on KuCoin Spot trading.
Setting a Stop Market Order
What Are Stop Limit Orders?
Stop limit orders combine the features of stop orders and limit orders and trigger a limit order when the asset reaches a specified stop price.
The stop price acts as a threshold that, when reached, activates a limit order. Once triggered, the limit order is placed with a specific limit price, ensuring that the order is executed at the trader's desired price or better.
Stop limit orders are beneficial when you want to control your order activation and execution price.
For example, if you own 1 Bitcoin (BTC) bought at $30,000, and the current market price is $40,000, you might set a stop price at $35,000 and a limit price at $34,000. If the market price drops to $35,000 or lower, your order is triggered and becomes a limit order to sell at $34,000. Your BTC will be sold if the market price is $34,000 or higher. If the price drops below $34,000 before your order can be filled, your BTC will not be sold. Stop limit orders can limit losses but do not guarantee execution.
There is a possibility that the limit order may not be filled if the market does not reach the limit price.
How Do Stop Limit Orders Work on KuCoin Spot?
A stop limit order includes a stop price and a limit price. When the market price reaches or exceeds the stop price, the order is triggered, and a limit order is placed at the specified limit price.
Stop limit orders are commonly used for setting precise entry or exit points in trading strategies and can be particularly useful for managing risks, capturing specific price levels, and implementing advanced strategies.
How to Make a Stop Limit Order on KuCoin Spot
You can create stop limit orders via the following order interface within the KuCoin Spot trading page.
Setting a Stop Limit Order
Check out the difference between stop market orders and stop limit orders.
One-Cancels-the-Other (OCO) Order
A One-Cancels-the-Other (OCO) order allows a trader to place two orders simultaneously: primary and secondary.
If either one of the orders is executed, the other order is automatically canceled. OCO orders enable traders to implement multiple strategies simultaneously, hedge positions, or manage risk efficiently.
For example, if you own 1 Bitcoin (BTC) bought at $30,000, and the current market price is $40,000, you might set a limit order to sell at $45,000 and a stop limit order with a stop price at $35,000 and a limit price at $34,000. If the market price rises to $45,000 or higher, your limit order is executed, and your stop limit order is canceled. If the price drops to $35,000 or lower, your stop limit order is triggered, becoming a limit order to sell at $34,000, and your limit order at $45,000 is canceled. OCO orders can manage risk and secure profits but do not guarantee execution.
Check out our tutorial on how to place OCO orders on the KuCoin spot market.
How Do One-Cancels-the-Other Orders Work on KuCoin Spot?
A one-cancels-the-other order can be considered a single order consisting of two dependent orders.
In the above scenario, if you aim to capitalize on a potential breakout in a volatile crypto asset, you can use an OCO order. If the crypto price surpasses a predetermined threshold, you can enter a buy position to take advantage of the upward movement. At the same time, you set a Take Profit limit order to lock in potential gains.
Conversely, if the cryptocurrency price falls below a specific level, you can trigger a Sell order to limit potential losses. This OCO order allows the trader to automatically execute either the Buy or Sell orders, depending on the price movement, while canceling the other order to manage risk and potentially capture profits effectively.
How to Make a One-Cancels-The-Other Order on KuCoin Spot
A one-cancels-the-other order can be created via the order interface within the KuCoin Spot trading interface.
Setting an OCO Order
Trailing Stop Order
KuCoin has implemented trailing stop orders to help you get the most out of your trading activities. A trailing stop order is a more advanced order found in the spot trading choices.
The concept of using Trailing Stop orders is simple - you can secure earnings and reduce losses.
When prices move in a favorable direction, the Trailing Stop order moves to lock in profits.
For example, if you own 1 Bitcoin (BTC) bought at $30,000, and the current market price is $40,000, you might set a trailing stop order with a trail value of $5,000. If the market price rises to $45,000, your stop price also increases to $40,000 ($45,000 - $5,000). If the market price then drops to $40,000, your trailing stop order is triggered, and your BTC is sold at the best available price. Trailing stop orders can protect profits and limit losses but do not guarantee a specific price.
When prices go against you, the trailing stop order will buy or sell to limit your losses.
How Do Trailing Stop Orders Work on KuCoin Spot?
In order to be as precise in your actions as possible, this type of order consists of four parameters that can be fulfilled:
1. Activation price — an optional setting.
It is triggered when the price of an asset reaches the preset price.
If you sell an asset, the set activation price must be higher than the current market price. The Trailing Stop will activate when the market price reaches the activation price.
If you buy an asset, the set activation price must be lower than the market one. When the market price falls, the preset settings are triggered, and the Trailing Stop starts tracking the lowest market price.
2. Trailing delta — a required setting.
This parameter is the maximum price pullback allowed according to the highest or lowest price set by the Trailing Stop order. It is possible to customize the trailing delta ranging from 0.1%-20%.
Always take the traded token's market conditions and price volatility when adjusting the Trailing delta setting.
3. Buy/Sell price — a required setting. It is used for limit orders after activating the Trailing Stop order.
4. Quantity — a required setting.
If you are selling the asset, the Trailing Stop option is activated when the market price matches the activation price.
When active, the trailing stop order will continuously follow the asset's highest market price and compare it to the current market price. If the price hits or surpasses the trailing delta, the trailing stop order is triggered, and the "sell price" and "quantity" parameters you specify are used to place a sell limit order.
If you buy the asset, the trailing stop option gets activated when the price reduces to the activation price.
When active, the trailing stop order will continuously follow the asset's lowest market price and compare it to the current market price. If the price hits or exceeds the trailing delta, the trailing stop order is triggered, and the user-specified "buy price" and "quantity" parameters will be used to place a Buy limit order.
How to Make a Trailing Stop Order on KuCoin Spot:
You can make a trailing stop order via the order interface on our platform's KuCoin Spot trading section.
Setting a Trailing Stop Order
We hope this article has been helpful. If you have any other questions, please contact our 24/7 customer support via online chat or submit a ticket.
Happy trading on KuCoin!
FAQs on Different Types of Market Orders
1. Can I Specify an Execution Price for a Market Order?
It's not possible to specify an execution price for a market order. If you'd like to specify the price at which your order gets executed, it’s best to use a limit order.
2. What Happens If the Market Price Doesn't Reach My Limit Price for My Limit Order?
If the market price fails to reach your specified limit price, your limit order will not be executed. The order will remain open and pending until the market price reaches or surpasses your limit price.
3. What Are KuCoin's Trading Fees?
KuCoin offers spot trading with trading fees starting at 0.1%. You can lower your trading fees significantly by holding KCS or increasing your trading volume.
Enjoy lower KuCoin trading fees by using KCS to pay trading fees.