Altcoins Talks - Cryptocurrency Forum
Archive => Sorting Box => Topic started by: Cryptonoob on February 08, 2021, 06:41:49 AM
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This question has a few parts to it. It's related to the following experience:
Recently upon a surge in Dogecoin, I apparently misplaced a decimal place in a limit order. Doge was fluctuating between .04 and .05. I entered a limit order to sell for .004 (instead of .04) or greater. The order was then executed and the units of Doge all sold for .004. Needless to say, I sustained a loss.
I am told his is normal, that the broker "flipped the spread," and that this is common knowledge that this is how limit orders work or can work with crypto.
My questions:
1. Is this how limit orders always work? I thought the order was to sell at above (but not below) the specified price. When selling crypto, do all limit orders in fact sell at the limit itself if it is below the currently fluctuating price range?
2. If so, is this the same with stocks? If I enter a limit order to sell 1 share of stock x at 90/share but it's fluctuating between 100-110, it will execute at 90? And will it be bought by the broker itself to as was phrased "flip the spread?"
3. My thought in setting the limit below the fluctuating price was as a safety valve to sell above, but not below that price. Is this incorrect?
4. As this has said to be common knowledge among experienced traders, is it an acknowledged risk among all brokerages and all cryptos?
5. Is a market sell then the favored and safer sell option if one is trying to sell withing a currently fluctuating range? Or is there another option to mitigate the execution at a lower rate below a certain threshold?
Thanks.
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A very simple way to invest and trade is that buy in low and sell in high. The more you hold the higher the profit and also risk will be. So before trading/investing please make sure about the coin.
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A very simple way to invest and trade is that buy in low and sell in high. The more you hold the higher the profit and also risk will be. So before trading/investing please make sure about the coin.
What??
I hope the next time do not try to response if you cannot read the entire content. ;)
Make sure to help the member who asked something important. Do not response not related opinions to their queries. If you don't know the answer, then better keep quiet. Other members may know and will drop their answers.