Crypto Spot market
This is a platform where users have a chance to exchange currencies through their purchase/sale. In contrast to the stock market, bids in the cryptocurrency spot market are made without days off, 24/7/365.
A trading pair consists of two different assets. Traders may buy or sell one of the assets in exchange for the other asset out of this trading pair. The available trading pairs are usually set by the exchange by internal considerations. Besides cryptocurrency trading pairs, the exchange also has got ‘crypto-fiat’ ones, such as BTC/UAH or USDT/EUR. Taking the following trading pair as an example (ETH/BTC), in this pair ETH is going to be called a ‘’Base’’ asset, while BTC is a “quote’’ asset.
There are several categories of trading pairs; they are called by name of the quote asset in a trading pair:
Traders may see all the available offers in an ‘order book’ of a cryptocurrency exchange. The order book is constantly updated within 24-hours; therefore it is possible to make a proposal to buy/sell an asset at any convenient moment. The exchange has got a separate order book for every trading pair. An example: the order book of the ETH/BTC trading pair contains all available offers to buy or sell ETH in exchange for BTC. The prices in the order book are specified in the quote asset, i.e. a trader may purchase 0.5 ETH for 0.03 BTC.
It is a type of order when a trader indicates the desired price of the asset purchase/sale. Such an order is added to the order book and will be completed at the moment when there is a chance to meet the specified price.
The example: the market value of BTC in the BTC/USD pair is $40,000. A user wants to purchase 3 BTC at $39,000 and places a bid order. His order will not be satisfied instantly, and the operation will end only when the market value reaches the specified price and there are users willing to sell 3 BTC in total at the price of $39,000.
This order type provides for the purchase/sale of an asset at the market price specified by the exchange. A trader just specifies the number of assets that he is ready to convert. If such an order is published, it will be completed right away.
In fact, stop-limit order is a limit order that is set automatically upon reaching a certain asset price. This type of order will be useful to reduce losses if there is a drastic drop in the asset price. You need to indicate two prices: stop – the price at which the order gets into the order book; and limit – that is the price upon reaching of which the trading operation must be held. The example: you have bought 1 BTC at a price of $39,000 expecting fast price growth. In such a case, in order to decrease possible losses, you may set a stop-limit order: the stop at the level of $38,500, and the limit at the level of $38,400. ****
A one-cancels-the-other order is a pair of Limit and Stop-Limit orders in which only one of the orders may be fulfilled. In case one order is successfully executed, the second one will be canceled automatically. This is a basic function of bidding automation that You may use at our exchange.
The example: you trade using the BTC/USD pair and have purchased 1 BTC at the price of $39,000. You suggest that the asset is underestimated and that the price will go up by $2,000. If that is the case, you may place the price order at the level of $41,000. To reduce risks of money loss, you may also place a Stop-limit order: the stop at $38,900 and the limit at a level of $38,800. If such an OCO order is placed, only one operation will be executed: if you were right and the price grew to $41,000, then the price order would be executed, while the stop-limit would be canceled automatically. If the price dropped, then the stop-limit order would be completed and the limit order deleted automatically.
Spot Trading interface (Classic/Pro)
The LocalTrade exchange offers its users two types of trader accounts: a Classic and a Pro one. Let us have a more detailed look at both versions:
Classic Spot Trading
A standard interface that is familiar to many cryptocurrency traders. To start working, it is required to choose a trading pair. One can do it in the appropriate window, in the top left corner of the page. Users may choose out of several trading pairs with a few types of Quote assets: BTC, ETH, Fiat, and Stablecoins. Once the trading pair is chosen, the webpage will be updated with the new data. In the lower-left corner of the page, there is a history of trading operations on the chosen trading pair. In the center of the screen, we may see an online graph representing the price of the trading pair. Under the graph, there is a window for fulfilling trading operations with several types of orders: Limit, Market, Stop-Limit, and OCO. In the right corner of the screen, there is an order book of the chosen trading pair indicating all the existing orders to buy or sell the asset.
Pro Spot Trading
This interface is built on the basis of the Classic account and is different in the arrangement of windows on the page only.
The choice of the trading pair is made in the top left corner of the screen by clicking the trading pair symbol. Most of the screen is taken by the asset price dynamics’ graph, which contributes to better information perception. Under the graph, there is the history of user operations with the possibility to filter them by active orders, history of orders, and completed deals.
In the top right part of the screen, we can see the order book status as well as the history of completed operations. At the bottom of the page, there is a window of trade operations’ completion.