What is the difference between a limit order and a market order on Coinbase Pro?

5 answers

• Dec 25, 2021 · 3 years ago
  A limit order is an instruction to buy or sell a cryptocurrency at a specific price or better. When you place a limit order, you set the maximum price you are willing to pay as a buyer or the minimum price you are willing to accept as a seller. The order will only be executed if the market price reaches your specified limit price. This gives you more control over the price at which your order is executed, but there is a possibility that your order may not be filled if the market price does not reach your limit price.
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• Dec 25, 2021 · 3 years ago
  On the other hand, a market order is an instruction to buy or sell a cryptocurrency at the best available price in the market. When you place a market order, you are willing to buy or sell at the current market price. Market orders are executed immediately and guarantee that your order will be filled, but the actual price at which your order is executed may differ from the price you see at the time of placing the order. This is because the market price can fluctuate between the time you place the order and the time it is executed.
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• Dec 25, 2021 · 3 years ago
  BYDFi, a digital currency exchange, explains that limit orders are suitable for traders who want to have more control over the price at which they buy or sell cryptocurrencies. It allows them to set specific price targets and wait for the market to reach those levels. Market orders, on the other hand, are more suitable for traders who prioritize speed and execution certainty over price control. They are ideal for situations where immediate execution is more important than the exact price at which the order is filled.
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• Dec 25, 2021 · 3 years ago
  When using limit orders, it's important to note that there is a possibility that your order may not be filled if the market price does not reach your specified limit price. This can happen if the market moves quickly or if there is not enough liquidity at your desired price level. Market orders, on the other hand, guarantee execution but do not offer price control. The actual price at which your market order is executed may differ from the price you see at the time of placing the order due to market fluctuations.
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• Dec 25, 2021 · 3 years ago
  In summary, the main difference between a limit order and a market order on Coinbase Pro is the level of control over the execution price. Limit orders allow you to set a specific price at which you want to buy or sell, but there is a possibility that your order may not be filled. Market orders guarantee execution but do not provide price control. The choice between the two depends on your trading strategy and priorities.
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