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What is the difference between Market and Limit Trade Order?
What is a Market Order or and how to use it? Please refer to:
What is a Limit Order or and how to use it? Please refer to:
What is the difference between Market and Limit Order?
XT.COM provides both Market Order and Limit Order in Spot Trading, to meet different needs of the traders. Below is a summarization of main differences between Market Order and Limit Order.
| Order Types | Definition | Features | Execution | Advantage |
| Market Order | A Market Order is an order to quickly buy or sell at best available price | A Market Order will be immediately filled at the best available price from the Order Book | The execution of a Market Order is guaranteed, however the executed price is not certain since the price may change quickly | Able to buy or sell immediately in a market with fast-moving price |
| Limit Order | A Limit Order is an order that you place on the Order Book with a specific Order Price | A Limit Order will only be executed if the market price reaches your Order Price (or better) | The executed price is guaranteed at Order Price or better, however the execution is not guaranteed if the Order Price is not met | Able to buy or sell at desired price |
Market Order
Market Order are handy in situations where getting your order filled is more important than getting a certain price. This means that you should only use a Market Order if you are willing to pay higher prices and fees caused by possible slippage.
Limit Order
You should use a Limit Order when you are not in a rush to buy or sell. Unlike a Market Order, the Limit Order will not be executed instantly, so you need to wait until your ask/bid price is reached. A Limit Order allows you to get your desired buying and selling prices.
What is a Taker and Maker?
Taker:
A taker takes the initiative to close the order in the Order Book. A taker order refers to the order being matched with orders in Order Book and executed immediately after placing, consuming the liquidity in the Order Book. This behavior is called taker.
Maker:
A maker order is placed with a better price (eg. a lower order price than current market price for buy order). A maker order will increase the depth/liquidity of the Order Book, and it will only be executed when the market price reached the Order Price. Since the order is providing liquidity and contributing to market making, it is known as a maker.
Taker/Maker Fee:
Whether it is a taker or maker, as long as the transaction is executed, each transaction will be charged a trading fee of two-thousandths (0.2%)
Note:
*For fee rate to VIPs, please refer to https://www.xt.com/rate
*There are trading pairs with special mechanism with different fee rate, you can check this on XT.COM's Explanation on Special Mechanism of Some Cryptocurrencies