1. The different order types at Bitstamp and how they work
- Instant order
A instant order is the easiest and most simple way to buy or sell crypto on Bitstamp. You simply choose if the want to buy (1) or sell. You enter the usd (or eur) amount to spend (2) and you hit the bottom BUY LTC (3).
The order will be filled with open sell orders in the order book (4) immediately. In this example, where we like to spend 10.000 usd the order will get filled with 21.57 LTC at a price of 77.22 and a total value of 1.665,66 usd. Also the second selling order in the order book will used to fill up your order, it will add 100 LTC at a price of 77.23 and a total value of 7.723,00 to you order. The final missing amount of your 10.000 usd order will be taken from the third selling order at 77.26 usd until the order is filled.
- Limit order
The limit buy or sell order is the most used buying or selling technic as it let you choose the price for execution. The order will only be executed at the price you have chosen.
In case you want to place a buying ladder in LTC (for example) you enter the price first (1), you enter the amount LTC you like to purchase at this price (2) and you hit BUY LTC (3). Your order will be added to the order book and is visible for everybody. Your open orders appear in the overview (4) and can be closed here as well. In the same way we can place a selling ladder!
- Market order
The market order works the same way as the instant order. The only difference is that you dont place a usd order to get filled, you place a order in LTC. Means you choose the amount to buy in LTC (2) and the system fills your order with open selling orders in the order book until your order is filled completely. In this example we want to buy (1) 200 LTC (2). We hit the BUY LTC bottom (3) and the system filled your order from the order book, starting from the lowest price until its completely filled.
- Stop order and trailing stop
A stop buy order at Bitstamp is used if you want to buy a breakout and not already want to get in at a lower price. I used this order a few times on breakouts and even with the option of a trailing stop. Latest i bought the breakout in BTC when we had the double top at 5.345. When the price has been at 5.200 i placed a stop buy order at 5.350 (2) and checked the trailing stop box (3). My trailing stop price was 150 usd, the difference from the actual price to the execution of my buy order. If the price rises above my execution price, the order will be executed as a market order and will get immediately filled. The stop loss raises automatically when the price of BTC is raising. It will always keep the distance of 150 usd behind the actual price, as long as the price is rising. Soon as the price start to drop the trailing stop loss will stop and act as a stop loss if the price falls deeper as 150 usd. Should the price starts to rise again above the previous high, the trailing stop loss will start to raise again and follow the trend up. Only if the price falls more than 150 usd, the stop loss will get activated and executed.
Its also here you place your manual stop loss as a stop sell order. This is your net if the trade goes against you. Here you can chose manually where to get out. A stop loss should be adjusted manually on the way up if not have a trailing stop in place.
2. The different order types at Binance and how they work
First i like to give you an overview about the main interface of Binance. Its a little more advanced compared to Bitstamp.
A: When opening Binance you will have to chose if you like to use the Basic or the advanced interface. In this example i use the Basic interface
B: On Binance you can trade 151 tokens and under the "Funds" page you see your wallets with your tokens listed
C: Under "Orders" you will find your open orders, order history and trade history
D: Here you chose the coin/ Token you like to trade. On Binance you can trade against BNB, BTC or in USDT (which is a stable token imitating the usd). For a token traded in USDT you simply klick on USDT and type in the tokens short cut. Double click on the token trading pair and start trading
E: Order book for selling orders
F: Order book for buying orders
In between the two order books you have the actual price
G: A candle stick chart without much options to adjust, but in the upper right corner you have the option to chose the TradingView chart instead. If use the TV chart you have all tools as you would have in the TV website! This is very helpful!
H: Your buying and selling console
I: Its here you see your open orders
J: The trade history for the token you have chosen. You can switch here to see your own trading history in this token.
So let's get into the different ways to buy and sell on Binance.
1. Limit order
The limit order works the same way as it does on Bitstamp. First you chose "Limit" (1) to buy or sell. It's the most used order as it lets you control your trade. You place a buy price (2), you chose the amount of the token you like to buy, here it's BTC and you hit the "Buy BTC" bottom (4). Alternative you can chose 25% - 50% - 75% or 100% of your available USDT amount (5).
Your buy order will appear in the order book and will be market with an arrow, so you can easily see where yours is placed.
The limit order will only be executed at the chosen price. In the "Open order" part below you have the chance to see how much of your order got filled and you can cancel the order as well. If you have a buy ladder in place and want to cancel all orders, you have the option to "Cancel All" in the upper right corner (6).
2. Market order
Same as in Bitstamp you have the easy option of placing a market order. Note that you cant chose the price! You simply chose the amount of the token (here BTC) you like to buy (1) and hit the "Buy BTC" bottom (2). Alternative you can chose as well to invest 25% - 50% - 75% or 100% of your USDT available (3). The market order will buy up the token from the order book for the best prices available. Selling works the same way.
3. Stop-Limit order
The stop limit order is similar to the one used in Bitstamp, with some small differences. At Binance you will have to enter a "Stop" value (2). In this example the price of BTC is at 5110.20 (1) and we like to buy a breakout at 5205. We enter a "Stop" value a little below our entry price at 5200 (2). Our buying price is 5205 and we place the buying price under "Limit" (3). You chose the amount BTC to buy (4) and hit the "Buy BTC" bottom (5). Alternative here again to chose a given percentage of your USDT holdings for this trade (6).
So, what will this order do?
The system will place a limit order in the order book at 5205 soon as the price hit the "Stop" value at 5200. But as long as the price is below 5200 your order will not show up in the order book! The limit order will be executed at your chosen price of 5205. Just like a normal limit order. Here is a difference to Bitstamp. In Bitstamp your Stop buy order will be executed as a Market order soon as the Stop buy triggers. In Binance you have a limit order which will only be executed to the chosen limit price.