Understanding Order Execution in Spot Trading
When you trade in the Coinut spot market, you can buy or sell Cryptocurrency pairs like XSGD/USDT. You do this by placing an order in our trading page. An order tells the market that you want to buy or sell a certain amount of an asset at a certain price.
An order book is a list of all the buy and sell orders for an asset. It shows how many people want to buy or sell the asset at different prices. When you place an order, it goes into the order book. The market will then try to match your order with someone who wants to sell (if you’re buying) or buy (if you’re selling) at the same price.
Referring to the above picture, at the price point of 1.341 XSGD, other traders have placed orders to buy a maximum of 38,461.73 USDT.
Similarly, at the price point of 1.346 XSGD, other trader have placed orders to sell maximum of 2,283.01 USDT.
What happens if I want to urgently buy or sell a larger amount than the current best price?
Sometimes, there might not be enough of the asset available at the price you want. In this case, your order will be partially filled at the price you wanted. The rest of your order will be filled at the next best price. This is called “spilling over” to the next price level.
In the above picture, you can see that there is a significantly larger order placed at the price point of 1.347 XSGD, if you selected "Market Order" to buy 45,000 USDT, you would first "buy out" the orders at 1.346 XSGD, then move up to the next best price and so on.
This means you might end up paying more than you wanted. It’s important to know this can happen when you place orders in the spot market.
One way to avoid this is to use a limit order. A limit order tells the market the highest price you’re willing to pay when buying or the lowest price you’re willing to accept when selling. If the market price goes beyond your limit price, your order won’t be filled.
If you want to place a large order (for example, over 50k USD), we recommend that you contact our OTC trade desk. Our team will help you complete your trade at a fair price, so that you are spared the hassle of working with the current market rates. Your OTC order can also be directly remitted in USD, SGD, MYR, and other Asian currencies.
RISK DISCLOSURE: ⚠️
Digital payment token investments, such as cryptocurrencies, are not guaranteed by service providers or cryptocurrency exchanges and the government. It is crucial to exercise caution in investing, including the awareness that a part or all of the capital may be lost and may not be recovered, especially in cases of high price volatility or down market, bankruptcy, seizures and other factors. Hence, the user’s risk tolerance, investment appetite or capacity for loss should be set firstly, and they should observe safe and knowledgeable investment practices accordingly. For more information, please visit MAS' website.
IMPORTANT NOTE: 📢
Coinut.com is a financial entity regulated as a Money Services Business in Canada and an exempt entity under the Payment Services Act in Singapore. Please be reminded that cryptocurrency trading is highly risky and is not suitable for the general public. For more information, please refer to Risk Warnings and Risk Statements.