Overview of Crypto Order Types: Market, On Trigger, Stop and Recurring Orders

The most common cryptocurrency order type is a market order, which refers to purchasing an asset at the buy price listed by an exchange. However, there are many other order types available when you purchase crypto. This guide will discuss the different order types available to you and when best to use each of them. 

What is a market order?

Market orders are essentially orders that are expected to execute immediately. For instance, if you are looking to buy half a Bitcoin at Swyftx for $25,000 and don’t want to wait until the price drops lower, then a market order is your best option.

A market order will be filled at the highest possible existing market price at the time an order is placed. An investor’s market order instructs an exchange or broker to purchase or sell that particular crypto asset at a particular price in the current financial market. Market orders are typically the most common order type for retail investors.

Generally, market orders can be filled almost instantly at a price that is very similar to the most recent posted price available to the investor. 

How to set up a market order with Swyftx

Now we will briefly walk you through how to place a market order on Swyftx. 

The ‘Market’ order type makes it simple to place instant buy and sell orders on Swyftx. When you go to the buy page for any asset, this is the default option. Simply type the amount of the asset you’d like to buy or the equivalent amount in AUD that you wish to spend. Depending on the quantity you wish to buy, an average price will be shown.

Click the ‘Instant Buy’ or ‘Instant Sell’ button to check the order’s info.

What is an on trigger order?

An on trigger order is a type of buy or sell order that dictates the specific price at which an asset must be purchased or sold. For instance, If the price of Ethereum is $3,000, you can set an on trigger order of $2,500. This means if Ethereum drops to $2,500, your on trigger order will automatically purchase the asset for you.

How to set up an on trigger order with Swyftx

On trigger buy orders must have a lower trigger price than the current price, implying that you are waiting for the asset to drop to your desired entry price. On the contrary, on trigger sell orders must have a trigger price that is higher than the current price, implying that you are waiting for the asset to reach a point where you want to sell. 

Swyftx does not charge fees on orders that haven’t been fulfilled. As a result, you will not be charged for this order until it is executed. Furthermore, these orders will remain open until business conditions cause them to execute, at which stage the expense of the order will be credited to your account. If the order has not yet been fulfilled, you can cancel it using the button below or the Order History page on the left-hand menu. 

What is a Stop Order? 

Similar to an on trigger order, a stop order allows you to specify the quantity of a particular asset to trade at a certain price. Stop buy orders need to have a trigger price that is greater than the current market price. For instance, you are waiting for the asset to breakout before purchasing.

Stop sell orders, on the other hand, must have a trigger price lower than the current price. This means that if your trade doesn’t work out, a stop sell order will automatically sell your asset so that you don’t lose too much. These order types are commonly referred to as stop-loss orders.

How to set up a stop order with Swyftx

A stop order allows you to decide how much of an asset you choose to sell at a certain amount. Stop orders, unlike on trigger orders, allow you to sell at a cheaper price and purchase at a higher price than what the asset’s current price is. 

For instance, if you wanted to buy 10 Ethereum and the price was $30,000 but you expected it to rise to $31,000. In this scenario, you may like to cap your losses if you’re off by $1,000, so you’d place a stop-loss order at $29,000 AUD/BTC. This means that if Ethereum falls below $29,000, the asset will automatically be sold and liquidated. This would be particularly beneficial if the price dropped to $28,500 or even $27,500, at which point you might consider re-entering a new trade. 

What is a recurring order?

Recurring orders allow you to deposit funds into Swyftx on a regular basis and automate the buying of several crypto assets at the same time. This is essentially the process of what is known as dollar-cost averaging. This is one of the most commonly used strategies across investing from cryptocurrency to stocks. Over time, the average cost of an asset overrides any potential market downswings with the expectation that, overall, the security will go up over time. Given the popularity of the dollar-cost averaging strategy, Swyftx has created the recurring order. 

Due to the market’s unpredictable price activity, dollar-cost averaging is a popular method for investing in cryptocurrency. As a result, Swyftx has made it easy for you to take advantage of this tactic by allowing you to set up a ‘Recurring order.’ Dedicate a portion of weekly, fortnightly or monthly income to buying crypto. 

How to set up recurring orders using Swyftx:

1. Choose which Crypto asset you’d like to buy. 
2. The order should be labeled (for example, ‘John’s Moon Order’). 
3. What proportion of your portfolio do you want to put into this asset? (5% being the minimum). 
4. Add more cryptos to the order (Note: the minimum allocation of asset is 5%, so there is a limit of 20 assets per order). You would, however, be able to add more properties by placing a new order). 
5. Arrange the order (Once steps 1-4 have been completed). 

Once established, a pop-up box will appear with all of the information you’ll need to place your order through your internet banking portal.

Please be sure to add the following: 

1. As shown, the right payment information is correct.
2. The prescribed amount (this is needed since there is a $25 minimum order spend). 
3. The Recurring Order’s description/reference (please double-check!). 

NOTE: You can manually top up your account with this information and have an automated payment made until the funds arrive in your Swyftx account. 

Please press the ‘I Understand’ button after you’ve entered this information. When you hit the button, you’ll see a rundown of your recurring order. 

Placing OTC or Large volume orders

Swyftx has its own department dedicated to large-volume bitcoin orders and services for high net worth individuals and institutions. They specialise in OTC crypto trades and large volume Bitcoin trades. So if you’re looking to invest $100,000 or more, book in a consultation to speak with one of our industry-leading experts.