One of the essential features in trading is exchange. In our “Exchange” functionality you can select if you want to place a buy, sell or stop-limit order.
Want to exchange cryptocurrencies in Trade by Trade?
Know how to do it using these tools.
How to do “Exchange” in Trade by Trade?
- Register or login in Trade by Trade exchange platform
- Select your base coin and the cryptocurrency you want to exchange
In this tutorial base coin is bitcoin and the exchange currency is DASH
Image 2: Choose base coin and currency to be exchanged
- Select “Exchange” in the top of the page
Image 3: Menu screen with “Exchange”
- Choose the type of order you want to place: buy, sell or stop-limit
Image 4: Choose order type screen
a) If you want to place a buy order
- Select the price, in base coin, that you’re willing to pay for each unit of your selected cryptocurrency (image 6, number 1)
- Choose the number of units, from your selected cryptocurrency, that you want to buy (image 6, number 2)
- Check the total price, in base coin, of your order (image 6, number 3)
- Confirm your order carefully and click the “Buy” button (image 6, number 4)
Image 5: “Buy” option menu
Image 6: “Buy” option menu fields
b) If you want to place a sell order
- Select the price, in base coin, that you’re willing to receive for each unit of your selected cryptocurrency (image 8, number 1)
- Choose the number of units that you want to sell from your selected cryptocurrency (image 8, number 2)
- Get the total price, in base coin, of your order (image 8, number 3)
- Confirm your order carefully and click the “Sell” button (image 8, number 4)
Image 7: “Sell”option menu
Image 8: “Sell” option menu fields
c) If you want to place a stop-limit order
- Select the stop value
- Choose the limit
- Select the currency amount
- Confirm if you wish to put the stop limit in buy or sell operation and click the appropriate button
A stop-limit order is an order to place a regular buy or sell order when the highest price or lowest price reaches a specified price, known as the “stop.” This can be helpful for protecting profits or minimizing losses.
The stop-limit has three inputs:
- Stop – think of this as the “trigger price.” If you place a stop-limit order to sell, it will turn into a regular limit order when the highest price drops to or below the stop. If you place a stop-limit order to buy, it will turn into a regular limit order when the lowest price raises to or exceeds the stop.
- Limit – this is the same thing as the “Price” on a regular buy or sell order. Once your stop-limit order has been triggered by the highest price or lowest price reaching your stop price, it turns into a buy or sell order for the price you enter in the limit field.
- Amount – this is the same as the “Amount” on a regular buy or sell order. It indicates the amount of coins you wish to buy or sell should your stop-limit order be triggered.
Image 9: “Stop” limit menu selected
How to use stop limit? Example explanation
Suppose you bought 100 Dash at a price of 0.023 BTC. It’s now at 0.026 BTC. You’ve made some profit, but you’re feeling good about Dash and think it has nowhere to go but up. At the same time, you’re aware that crypto is volatile, and that tomorrow’s headline could cause the price to crash. How can you hold your Dash, but make sure you get out if a crash comes? Place a stop-limit order with these parameters:
Stop: 0.024 BTC
Limit: 0.023 BTC
Amount: 100 Dash
Then click “Sell” in the stop-limit box. “If the highest bid drops to or below 0.024 BTC, an order to sell 100 Dash at a price of 0.023 BTC will be placed.”
You now have some protection. You’re holding your Dash, but if the price crashes to 0.024BTC, your Dash will automatically be sold (as long as there are enough buy orders at or above 0.023 BTC). As with a regular sell order, your coins will be sold at the best possible price; so, if you want to be sure your coins get sold, set the limit price even lower.
Your limit price does not have to be lower than your stop. If you anticipate a dead cat bounce to 0.025 BTC after the crash to 0.024 BTC, you can set your stop at 0.024 BTC and your limit at 0.025 BTC. This will cause a sell order at 0.025 BTC to be placed should the highest bid drop to 0.024 BTC.
Image 10: “Stop” limit menu fields
Suppose Dash has crashed to 0.002 BTC. It’s low, and it’s a good time to buy those 300 Dash you’ve been wanting. But you think it isn’t done crashing, and would like to wait for it to go even lower before buying. Still, you could be wrong, and want to be sure you don’t miss out on buying. Place a stop-limit order with these parameters:
Stop: 0.0022 BTC
Limit: 0.0025 BTC
Amount: 300 Dash
Then click “Buy” in the stop-limit box. “If the lowest price rises to or above 0.0022 BTC, an order to buy 300 Dash at a price of 0.0025 BTC will be placed.”
Now, you can watch the price. But if you’re wrong and the price rises to sky, you’ll automatically buy in when the lowest price reaches 0.0022 BTC (as long as there are enough sell orders at or below 0.0025 BTC to cover your purchase).
As with the sell-type stop-limit order, you can place your limit anywhere you want. If you want to bet on a downtick after the price hits 0.0022 BTC, you can set your stop at 0.0022 BTC and your limit at 0.0021 BTC. This will cause a buy order at 0.0021 BTC to be placed when the lowest price reaches 0.0022 BTC.
Image 11: “Stop” limit menu fields
After you place an order, you can check it in the order books. Once your order is satisfied, you’ll receive the exchanged cryptocurrency in your account.
This tutorial is made in order to explain how to use some features in the platform. Fees were not considered in this tutorial, but will be considered in real operations – and you’ll be informed on it. Values that were used in this example are not the market real values – just dummy values we use for the example, and are not be used in your investment decisions.