What is a 'Market Order'?
A market order is when a trade is made by buying or selling a cryptocurrency at the best available rate. This means if the market moves or a high volume trade is attempted, the best possible rate will continuously be purchased until the order is filled. This can potentially lead to slippage in high volume trades.
A market order to buy 1 BTC is made on a BTC/USD pair. In this case, the exchange will continue to buy the best rate of BTC until the order of 1 BTC if filled. This means if the current rate is 6231.00, but the market is not liquid, the resulting trade could result in buying BTC at 6231.00, then 6235.12, and 5239.12 as it continues to buy up all of the available open orders in the market.
How are Market Orders used in the Shrimpy APIs?
Developers can use market orders by calling the "Create Trade" endpoint. This endpoint will allow developers to specify a "from" asset and a "to" asset. Shrimpy will automatically create smart market orders to route the trade from the "from" asset to the "to" asset.
Have questions, comments or concerns? Feel free to reach out to us via the blue "Support" button found in the bottom left corner of your Dashboard, or send an email to Support@Shrimpy.io.