FAQ

Trading on the Spot Market

XeggeX offers multiple spot markets available for trading. Every market will have an order book specific to the pair being traded. The order book is the backbone of any spot market. The order book is defined as the list of current buy orders and sell orders for a specific asset. Here all buy/sell orders will be visible for any given pair

XeggeX currently has 3 order types for trading on the exchange. These include market, limit, and trigger orders. All traders who use our trading services must understand these orders before trading. In this article, we will define each order type and how they work.

Market Order

A market order is defined as a trade order in which an amount is specified to be bought/sold regardless of price. Market orders are instantaneous and will buy/sell until the specified amount is reached. Market orders can be volatile depending on markets with low liquidity.

Limit Order

A limit order is defined as a trade order in which an amount is specified to be bought/sold at a set price. When a limit order is set, the tokens specified are held in reserve to be traded at the specified price. This is to prevent the event of an overdraw occurring on your account. Simply cancel the order and the tokens will be returned to your balance. The trade order will only execute if the price set is hit. These orders are best used to extract maximum value from your trades.

Trigger Order(Stop order, Take profit)

A trigger order is a type of trade order that is used to buy or sell an asset when it reaches a specified price without needing to hold assets in reserve to maintain the order. This order is not placed into the order book until the trigger price is met. The concept behind a trigger order is to automatically execute a trade when a certain price level is reached, which can be helpful in several ways. For example, a stop order can be used to lock in profits, or to minimize losses.

Once a trigger order is placed, it remains pending until the specified target price level is reached. At that point, the trigger order becomes a regular order and is executed according to the settings of the order.

Creating a trigger order is simple. We will go over each step and section in detail below:

1. Trigger Event Type. This is either "Less Than" or "More Than", meaning the triggering event happens when the last trade price of the market is lower or higher than the price you enter.

2. Trigger Event Price. When the market's last price crosses this price, either higher or lower depending on the event type setting, then the order creation event will occur.

3. Order Side. After the event is triggered, you either want to place a Buy order, or a Sell order. Here you will specify the side.

4. Order Type. Here you will select either a "Limit Order" or a "Market Order". It should be noted that if you select a "Market Order" and the order books cannot fill the request in full, then the Stop order will be canceled and no action to be taken.

5. Order Quantity. The quantity that you wish to buy/sell. If you do not have enough funds for the quantity indicated, depending on the setting you have for “Quantity is Maxiumum” it will either cancel the order or reduce the quantity.

6. Order Price. If “Limit Order” is selected, you will set the specific price here.

7. Quantity is Maximum. If set to YES, the system will automatically reduce your quantity to an amount that you have the funds available for. If this is set to NO, if you do not have the balance available make the order at full quantity. In which case, the Stop order will be canceled and no action taken.