1. Different Order Type Chart

2. Market Order

3. Limit Order

4. Conditional Orders

Zoomex provides three different order types, limit orders/market orders/conditional orders to meet the trading needs of traders.

Market order

The market order will be executed at the best price available in the order book at the execution time. Traders do not need to set the price which allows the order to be immediately executed. Although market order guarantees the execution of the order, the execution price cannot be guaranteed because the market price may fluctuate rapidly. When traders need to enter or exit a volatile fast-moving price market, market orders are generally used.

Limit order

Limit Order allows traders to set the order price, and the order will be filled at the order price or an executed price better than the order price.

For Buy Limit Orders, the order price must be set at a price lower than the last traded price, or it would be filled immediately as a market order (a 0.06% trading taker fee will be charged.) The same applies to Sell Limit Orders, but the order price must be higher than the last traded price.

When submitting a limit order, if there are no orders in the order book that are better than or equal to the order price to be matched, the limit order will enter the order book to await execution which in turn will increase the depth of the market. Hence, as a market maker, the trader will receive a 0.02% Maker fee rebate.

In addition, limit orders can also be used to partially or fully close a position. The advantage of a limit order is that it can guarantee the transaction at the specified price, but it also faces the risk of the order failing to be executed.

Conditional Orders

They are advanced orders that submit automatically once specified criteria are met, namely a trigger price.

Once the preset trigger price meets the Last traded price, a conditional market order will be filled immediately, while a conditional limit order will be submitted to the order book and pending for execution. This limit order will, then, only be filled once the last traded price reaches the preset order price.

Let’s look at an example to see how conditional orders can be used to mimic common order types.

For Stop Loss Orders

A Stop Loss order is an instruction to close your position to limit the loss. It is exactly the same as a Stop-Entry Order but is used as an exit option by traders. By using a conditional order, we can customize the stop loss order as a stop loss market order or stop limit order and have the flexibility to partially close a position.

For Take Profit Orders

A Take Profit Order is an order that closes a position once it reaches a certain level of profit. As mentioned earlier, it can be achieved through Limit Orders. But how to take profit by partially closing an existing position with a market order? To do this, use a Conditional Market Order with a trigger price set to be better than the current last traded price along with the desired quantity of contracts. Take Profit Orders are commonly used as an exit option, but can also be customized as an advanced entry order on Zoomex’s platform.

For Stop-Entry Orders

The appeal of using Stop Orders is that traders are able to trade a breakout on the market. There are two types, namely

1. Buy stop is an order to buy at a specific price above its current market price.
2. Sell stop is an order to sell at a specific price below its current market price.

In Zoomex, traders can make use of a Conditional Order to set up a stop order indirectly. Please follow the following steps below to execute a Buy Stop or Sell Stop respectively.

Buy stop

1. Choose a conditional Limit Order(set a specific price) or a Conditional Market Order
2. Set a trigger price which is higher than the current market price
3. Click Buy/Long to place your order
4. When the market price hits the trigger price, the corresponding Limit or Market order will be activated.

For example:

At present, the BTC Last Traded Price is 6,000 USD. If the trader wants to make a buy Stop Loss when the price breaks through 6,500 USD, he or she can perform:

1) Conditional Market Order:

Set a trigger price of 6,500 USD. When the market price reaches 6500 USD, the trader's buy order will be executed.

2) Conditional Limit Order:

Set a trigger price of 6,500 USD, and set a limit price of 6,500 USD; when the last traded price reaches the trigger price, the order will be executed at the specified price of 6,500 USD according to the market depth. (This method is applicable to traders who are worried that the market depth is not deep enough when the last traded price reaches the trigger price and that the market order may lead to an undesired average execution price.)

Sell Stop

1. Choose a Conditional Limit Order(set a specific price) or a conditional market order
2. Set a trigger price which is lower than the current market price
3. Click Sell/Short to place your order
4. When the market price hits the trigger price, the corresponding Limit or Market Order will be activated.

For example:

At present, the BTC market price is 6,000 USD. If the trader wants to sell the stop loss when the price falls to 5,500 USD, he can perform:

1) Conditional Market Order:

Set a trigger price of 5,500 USD.
When the market price reaches 5,500 USD, the trader's sell order will be executed

2) Conditional Limit Order:

Set a trigger price of 5,500 USD, and then set a transaction price of 5,500 USD.
When the market price reaches the trigger price, the order will be executed at the specified price of 5,500 USD according to the market depth.

(This method is applicable to traders who are worried that the market depth is not deep enough when the last traded price reaches the trigger price and that a market order may lead to an undesired average execution price.)