Topic: Still confused about limit order or stop-limit order or combining them (Read 376 times)

Ok,

After spending some time on net  I found an answer:

When we create a limit order to e.g buy 23 MKR with 1 BTC, this is registered in ledger and will stay there until filled or cancelled. To fill the order a matching order will need to exist in the system, so someone actually needs to sell at that price or cheaper.

Stop-limit order will not be registered in ledger until price reaches some point (STOP price). When we create the order you specify both the price MKR needs to reach and price for our order (LIMIT price).

So if we set the stop price to 1/23 (0.04347) and limit price to 1/22 (0.04545), when the price reaches 0.04347 a purchase order to buy at 0.04545 will be registered in ledger.

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But still I need to clarify from the above  answer:

1) Limit order executes only when some other party is interested or have put an order at that price or less & the chances of filling are high if the market shifts to that level .....one can still be unlucky if no one puts an order (such as in case of dead coins or 1 of the coin becoming priceless).

2) Stop-limit order only increases this probability (from only my selling point of view) by executing limit order when prices are favorable for any party to grab the deal because market has shifted to that possible level.

For what I feel stop-limit order is more sort of beneficial for those who wish to get profited from daily trading...by investing and moving from 1 coin to other in order to create net profit.

Can anyone please specify advantages ( seems to me like a dead topic  on this forum ) of stop-limit order over limit order? If i have missed something.

Sorry, i failed to make you all understand (not good at writing).....okay i will try to make things simple with an existing eg. of binance plus BTC and MKR (both volatile).Suppose,

I wish to buy 23 MKR for 1 BTC (that's 100% of available BTC in my account) & current market order price allows me 1 BTC = 21 MKR hence I create Limit order to buy MKR in binanace (BTC/MKR market) such that I select the BTC price in a way (with 100% available BTC selected) that it shows quantity at 23.

Now, is this limit order executed according to the BTC/MKR price ratio OR specifically when BTC goes up and MKR goes down/stays same or vice-versa?

I guess binance limit-order is only concerned with MKR value going down such that order is executed and 1 BTC results in 23 MKR i.e wait for MKR going down not BTC going up?

I believe that the order should not be concerned which one goes down/up....simply want to see 23 MKR in my binance wallet. Is this sort of autoinvest?

I am not able to understand this specifically as my target is to make 23 MKR??Stop-limit order has no role in this I guess?

Then, it's a manual order you need to put every action buying and selling on each coin.

@OP asking a method an automatic action when required 2 action transactions with different coins with a single set up. I think @jackg already giving him an answer, these transactions should be using a bot. The bots need to watching other coins price when the other coins reaching his price buying then the coins he has right now will be triggered to sell immediately and make an order limit to other coins he wants to buy.

I don't think it's actually possible because you cannot "set up" something like that except if there is any API of a bot to allow you to do it the way you want to. But if you are too much concerned about this, you can do it in this way:
- Open 2 tabs
- Open both the desired coins (the one that you are willing to sell and the one you want to buy)
- Open the tab where you want to set limit buy to buy coin B, put the exact amount of coins you're willing to buy
- Switch to next tab and sell your bought coins A and immediately switch to the first tab
- Set up your limit buy and wait for the coins B to be bought.

You'll probably have to try to bot this or check it daily because I don't think the exchange will allow you to "autoinvest" the profit you make on one assuming that's what you're wanting to do?

I have somewhat understood both limit and stop orders ( may be not  ) at some exchanges, even executed some similar order types but I am still looking a way to execute an order based on target volume of a coin (say to buy)...for eg.

I wish to buy a volume (say 100) coin B by selling coin A (both are highly volatile) now in limit order I can set to sell A at certain price so that it results in 100 B OR trigger it to sell at price point as in stop-limit (not much of a use here) with same result.

But this sometimes can take lot of time to fill the order...as both are volatile ...(both may go down or up...generally happens in BTC) I wish to buy 100 B if either B goes down or A goes up so that the volume purchased remains at 100 B irrespective of ups and downs of both the coins...

Is this possible in any exchange by combining orders or by using a new order type introduced in any of the exchanges?