- There are two types of tactics used in Short term trading.
- Market order occurs when buying or selling activities gets executed automatically at the current market price.
- Due to the impact of external forces, there may be a slight difference between the expected price and the filled price.
As investment in cryptocurrency breaks new records every day, the demand for robust exchange software becomes an absolute necessity.
The speed at which orders are processed has become a yardstick for judging the efficiency of a Cryptocurrency exchange software. There are various types of orders used by traders in their daily operations. The most common types are market order, limit order, stop order, etc. A market order is frequently utilized for handling funds.
Before getting into the intricacies of a market order, let us understand the fundamentals of trading.
Trading Strategies utilized in Cryptocurrency exchange software
- Short term trading – Traders enter into and exit from a contract within a few days or weeks. This type of trading is ideal as parties can analyze the risk beforehand by closely monitoring the movement in the prices of cryptocurrencies.
There are two types of tactics used in Short term trading. They are classified into two types, Daily Support and Hammer Pattern strategy.
- Daily Support – Short term trading is done through technical analysis, where charts and graphs are used to understand patterns and trends. The future price of assets is determined on the extent of trading activities and variation in prices of cryptocurrencies. Traders look to avoid losses and aim to earn a small profit.
- Hammer Pattern strategy – This technique involves traders undertaking research about the price direction and previous price movements of different digital assets. Decisions would be taken based on the extent of fluctuation in price. It is also called a pullback trading strategy as funds may be withdrawn from the investment if there is an unfavorable movement in price. Traders would predict that once price reduces to a minimum level, it will rise back to a high. Recovery of the market is dependent on the quickness with which the price rebounds.
- Long term trading – Traders park their funds for a few months or years. It focuses more on future market conditions disregarding the currency scenario. More profit can be earned by investing the dividend back in the market.
Getting to know how Market order operates
Market order occurs when buying or selling activities gets executed automatically at the current market price. Traders analyze the quantity of trading than focussing on the price. Due to the impact of external forces, there may be a slight difference between the expected price and the filled price. Traders increasingly use market order in White label Cryptocurrency exchange software since it guarantees a no-loss situation. The earnings would depend on the constant variation in the market ask price. The best ask price would be the highest price while the…