What is a market order?
A market order is an order that is placed at the current best market rate for an asset pair. When placing a market order, the price of the trade is determined by the current rates that are available in the market.
Traditionally, when a market order consumes a level of the order book, it will move on to the next level instantly to continue consuming the order book. For this reason, many traders are hesitant to use market orders when trading on exchanges.
In the Shrimpy Trading Terminal, we have implemented something called a "Smart Market Order". Rather than wildly consuming the order book, we have implemented a strategic algorithm that will systematically place limit orders in order to manage the impact each trade has on the market.
Using limit orders allows us to control for things like spread and slippage.
How to use market orders?
Placing market orders in the Shrimpy Trading Terminal is simple. Rather than configuring a list of settings, all you need to enter is the amount you would like to trade. You can see an example in the below image.
Once you have entered the amount of the asset you want to buy or sell, select the option for either "SEND BUY ORDER" or "SEND SELL ORDER". In this example, the buy option will purchase BTC from USDT while the sell option will sell BTC to purchase USDT.
After the order is placed, Shrimpy will systematically execute limit orders on the exchange to buy or sell the asset of choice. Using the above example, Shrimpy would stop trading as soon as it has traded exactly 0.03 BTC.
Have questions about market orders? Send us an email to [email protected]!