What is the difference between a market order and a limit order on Robinhood for cryptocurrencies?

3 answers

• Dec 29, 2021 · 3 years ago
  A market order is an order to buy or sell a cryptocurrency at the best available price in the market. It is executed immediately, ensuring that the order is filled quickly. Market orders are suitable for traders who want to enter or exit a position quickly, without being concerned about the exact price they get. However, the downside is that the execution price may not be exactly as expected, especially during periods of high volatility.
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• Dec 29, 2021 · 3 years ago
  On the other hand, a limit order is an order to buy or sell a cryptocurrency at a specific price or better. It allows traders to set a price at which they are willing to buy or sell, and the order will only be executed if the market reaches that price or better. Limit orders provide more control over the execution price, but there is a risk that the order may not be filled if the market does not reach the specified price. Traders who are more price-sensitive and want to ensure a specific entry or exit point often use limit orders.
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• Dec 29, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, also offers market and limit orders for trading cryptocurrencies. Market orders provide instant execution, allowing traders to quickly enter or exit positions. Limit orders, on the other hand, give traders more control over the execution price. It's important to consider your trading strategy and goals when deciding between market and limit orders on any platform, including Robinhood or BYDFi.
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