How does EXMO cryptocurrency exchange trade page interface work?
Cryptocurrency investments especially in bitcoin are very popular nowadays. A lot of users prefer to buy bitcoins and sell them on cryptocurrency exchanges, because it’s convenient, safely and profitably
It is vitally important for beginning investors to be good at how exchange trade interface is organized, before start working with it. Prior to sell bitcoins it would be useful for miners and those who earn from bitcoin-cranes to understand how exchange trading interface is organized.
Let’s see which main elements are included in trading interface and how you can work with it.
The chart on currency exchange
Let’s begin to study the interface with consideration of chart, depicting one or another cryptocurrency price changing. The chart you can see on the picture, displays bitcoin/USD rate changes
in the chosen period, in this case - during 24 hours.
Each of trade pairs, existing on currency exchange, has its own chart (pairs choosing interface you can see in the upper part of the screenshot). One type of trade pairs allows to buy cryptocurrency using fiat money (for example, you can buy bitcoin for rubles), or even sell it for fiat. Others serve for bitcoin exchange to third cryptocurrencies (altcoins); in the same way, it’s also possible to buy bitcoin on these pairs, paying by your altcoins.
The chart is depicted in the form of “Japanese Candlesticks” (red or blue rectangles); in this example each candle depicts auction dynamics for half an hour, but if we choose the whole period which lasts for a week, for example, candles would fit longer time periods.
The so called “candle body” looks as a rectangle, borders of which are formed by prices indicating the beginning and the end of the depicting time period. In case, when prices of the beginning of the period have occurred to be lower, than at the end of the period, such candle is called “Bullish” and is painted in blue. If by the end of the period prices have got lower, the Candle is called “Bearish” and is painted in red.
It’s worth to remember, that during the most stable periods the size of the Candlestick reflects just spread size (the difference between the best buy and sell prices), and also its color doesn’t provide a lot of useful information. At the same time, during periods of active market movement it’s very comfortable to determine visually the asset average price changes according to “candles” size and color.
Thin lines that go upwards and down from the candle body are called “candle shadows”. They depict price excursions from the beginning and the end of the mentioned period during half an hour. Candlesticks that practically do not have body are called “dojis” and depict that prices at the beginning and at the end of the period were equal. Candlesticks with small body are called “spinning tops”.
Skills of candlestick charts reading are very useful for understanding what has been going on during the researching period. They are especially useful for a professional trader, though it would not be an extra for a person who prefers cryptocurrency investments.
Ending our talk about the chart, we’ll note that an additional chart also deals with 24 hours period. This chart is situated below the main one and informs about assets volume, bought and sold on this pair. Easy to see, the compliance between dramatic price movements notable enough according to “Candlesticks” and trade turnover “spikes” in the lower part of the chart.
Order book, orders and trade history
Below the chart you can see the interface for sell and buy orders creation and after this - are so-called “Order books” and trade history. There are sell and buy cryptocurrency orders created by exchange users, situated in Order books, these orders are sorted by rate (you can see the best rate orders in the upper part of the Order book). Order list is depicted in the form of the table, where there is price, buy/sell asset volume and the total sum of orders fulfilling stated for each of them.
If we use, for example, BTC/USD pair, then in the left order book would be orders to buy bitcoins for your dollars and using the right order book you can sell your bitcoins for the best purchase price. The difference between best buy and sell prices is the spread that we were talking about a bit earlier.
If you want to buy or sell any asset on the exchange, for example, to sell bitcoins you can either make an instant trade according to market conditions (in other words, you can create a market order, that will fill immediately), or create a limit order (“order by limit”).
In the first case, within the trade according to market conditions everything is happening much easier: you set the “Instant order” mode, state the amount of cryptocurrency, that should be sold (or a sum you want to give or get), then press “Buy” or ”Sell” button and the trade appears immediately according to the best price among the accessible ones in the order book. It should be noted, by the way, that there is a page “Exchange”
on EXMO cryptocurrency exchange platform where you can also buy or sell assets at market prices, but even in more convenient mode. It’s desirable to estimate whether there is enough of liquidity in the order book, during usage of instant orders for buy/sell cryptocurrency in large amounts. In other words, whether there is a sufficient amount of limit orders with reasonable prices for your instant order would fulfill completely at their expense. Otherwise, part of your order will be fulfilled at the cost of third persons’ orders with less attractive prices.
In the second case, during the creation of limit order you can choose the price at which you want to sell cryptocurrency (for example, to sell bitcoins) or to buy it. After setting necessary price and the necessary amount of asset, you should press “Buy” or “Sell” button and your order will take its place in the relevant order book (If you have made a mistake while setting the price of purchased cryptocurrency and set the price that is much higher than the market one, the interface will inform you about a possible mistake).
If you have set a reasonable price, there are high chances that your order would be filled sooner or later, and you would get the amount a little bit higher, than the one from the market trade. However, while making cryptocurrency investments it’s better not to pursue such economy, in the situation when bitcoin or another buying cryptocurrency price quickly increases, your order may not keep up with it and purchase price will go up. That is why, limit orders are relevant for those who speculate professionally on cryptocurrency market.
Regardless the fact whether the trade was made through limit order or just using instant order, there is a commission (on most exchanges equal to 0,2%) paid due to the currency which a buyer gets according to trade results. For example, if a user buys one bitcoin for 2500 USD, deducting commission, his exchange balance will be updated with 0.998 BTC. If he performs the sale of his bitcoin for the same price, he’ll get 2495 USD.
Trade history interface is clear enough: there are all recent trades sorted by time and sticked according to their type (“buy” - while buying through the left order book, “sell” - while selling through the right one), price, asset amount and, finally, overall sum in it.
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