How does selling ex-dividend affect the reduction of two orders in the cryptocurrency market?

1 answers

• Dec 29, 2021 · 3 years ago
  Selling ex-dividend in the cryptocurrency market can have a significant impact on the reduction of two types of orders: limit orders and stop-loss orders. Let me explain. When a cryptocurrency goes ex-dividend, its price usually drops by the amount of the dividend. This drop in price can trigger limit orders that were set below the ex-dividend price, resulting in a reduction in the number of buy orders. Additionally, some investors may have set stop-loss orders at a certain percentage below the current price to protect against significant losses. When the price drops due to ex-dividend selling, these stop-loss orders may be triggered, leading to a reduction in sell orders. So, selling ex-dividend can affect the reduction of both buy and sell orders in the cryptocurrency market.
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