Are there any risks or drawbacks associated with using limit orders in the digital asset space?

1 answers

• Jan 12, 2022 · 3 years ago
  In the digital asset space, using limit orders can have its risks and drawbacks. One potential risk is the possibility of order slippage. This occurs when the execution price of the order differs from the expected price due to market fluctuations. Slippage can result in a less favorable execution price and potentially impact the overall profitability of the trade. Another drawback is the potential for order expiration. Limit orders typically have a specified time frame within which they must be filled. If the order is not executed within this time frame, it may expire and need to be re-entered. It's important to monitor the market conditions and adjust limit orders accordingly to mitigate these risks and drawbacks.
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