Limit order, Kraken, Order Book

“Ask for a fortune with Kraken’s order book and limit orders”

In the world of cryptocurrency trade, there are several tools at your disposal to execute operations efficiently and precisely. Two crucial concepts that can help you achieve this goal are limited orders and orders books. In this article, we will deepen these two concepts and explore how they work together to give an advantage in the cryptocurrency market.

What is a limit order?

A limit order is a type of purchase or sale order that specifies a specific price to which you want to enter or leave the market. Unlike Stop-Loss orders, which are automatically sold at a certain price when the action reaches a default level, limited orders allow you to specify your own target price for each operation.

When ordering a limit on an exchange of cryptocurrencies such as Kraken, you will generally be asked to enter the following details:

• Buy or sell

• Quantity (the number of tokens or units)

• Price (the specific amount you are willing to pay)

• Type (limit): Specify whether it is an order of “in the market” (AMM) or an order of “market”

For example, if you want to buy 10 bitcoin at $ 50,000, your limit order would be: “Buy 10 bitcoin at $ 50,000”.

What is an order book?

An orders book is a digital record of all the requests of the market participants for a private asset. It shows the quantity and price of each type of order sent by merchants or individual exchanges. The order book provides valuable information about market conditions and helps measure the probability that the filling of its trades.

Kraken’s order book, in particular, offers an impressive 25 million pairs of cryptocurrencies for trade. You can see the current prices of several assets and even access real -time quotes of market participants. This allows you to identify possible commercial opportunities and adjust your strategy accordingly.

How do limited orders work with orders books?

When you use Kraken’s order book, you will notice that there are several available limit orders:

* Market orders : These allow you to enter or leave the market at any price, regardless of whether it coincides with the current market price.

* Suspension orders : These are automatically sold at a certain price when the action reaches a default level (for example, 10% below its entrance price).

* Take orders for profit : these are directed at specific prices for their long positions and will be automatically sold if reached.

When combining these tools with Kraken’s order book, you will get access to more precise market information and better decision making. For example:

• If the current market price is $ 10,000, but you want to buy 100 bitcoin at that price (a limit order), you can enter an operation at that price from your Kraken account.

• When you use detention orders or task orders in the same asset, Kraken’s order book allows you to monitor and adjust these strategies in real time.

Conclusion

Order books provide essential information about market conditions and allow merchants such as making informed decisions about their cryptocurrency operations. By combining limit orders with access to a solid order book such as Kraken’s, you can execute operations more efficiently, minimize risks and potentially increase your investment returns.

Therefore, the next time you are planning a trade or looking for ways to optimize your cryptocurrency strategy, be sure to explore the world of orders books and limit orders; You can discover new opportunities to benefit from this volatile market.