An Advanced order on the Spot Exchange is an order type, which performs a Market order once a prespecified price has been reached. With this order type, you can place a single order which operates as two. The price of execution is defined by the client, and once it is crossed or exceeded, the order is carried out.
How to place an Advanced order
1. First, you should navigate to the Spot Exchange.
2. From there, you have to select the ‘Advanced’ order type under the ‘Market’ category, as illustrated:
3. Then, you would have to enter an Amount in terms of the currency you wish to acquire or sell. From there, you can set an exit position in both directions (Stop Loss & Take Profit). A valid entry would be a percentage or a specific trigger price. The two sell orders will be opened immediately once you complete the order but they will be executed only when their preset price is met.
4. Once you have filled the above fields, you will be presented with a detailed order summary. With it, you will gain a better understanding of what your potential profit or loss value is, which will aid you in making your choice.
Using the Buy Advanced order option
With this mechanism, you can place two pending orders which are to be executed when your predefined price thresholds are reached. Only one of the two orders can be triggered at a time, either to secure your profits or to minimize your losses. For example:
- You place an order using the current Market price for 1 BTC at the current price of 20,000 USDT.
- You type in a Stop Loss price of 19,000 USDT (or 5% Loss) to define your Stop Loss order.
- Simultaneously, you set a Take Profit order at a price of 22,000 USDT (or 10% Gain) to secure profit.
There are three possible outcomes here:
- 1. The price fluctuates between 19,000 and 22,000 but never hits either value. In this scenario, the order will not be closed.
- 2. The price hits 22,000 (or more). In this case, your order will be closed, and you would have exited at a profitable position.
- 3. The price declines to 19,000 (or less). Here, you would have exited the position at a loss but would have a worse outcome if the price continued to steadily move downward.
Using the Sell Advanced order option
As with the Buy option, only one of the two orders can be triggered at a time, either to secure your profits or to minimize your losses. For example:
- You place an order using the current Market price for 1 BTC at the current price of 20,000 USDT.
- You type in a Stop Loss price of 21,000 USDT (or 5% Loss) to define your Stop Loss order.
- Simultaneously, you set a Take Profit order at a price of 18,000 USDT (or 10% Gain) to secure profit.
The reason why the Stop Loss and Take Profit prices switched place is because you have sold Bitcoin and would be at a profit if the price goes down and you acquire BTC at a cheaper price.
There are three possible outcomes here:
- 1. The price fluctuates between 18,000 and 21,000 but never hits either value. In this scenario, the order will not be closed.
- 2. The price hits 21,000 (or more). In this case, your order will be closed, and you would have exited at a loss but would have minimized the overall potential loss if the price was to further increase.
- 3. The price declines to 18,000 (or less). Here, you would have exited the position at a profit and acquire Bitcoin at a lower price.