An account holder opens a Long Position when they buy a security that is expected to rise in value. The Long Position is closed when the security is closed.
An account holder may open a short position by borrowing and then selling a security that is expected to decrease in value. It is closed when the account holder buys the security and returns it to the lender.
To execute a transaction, an account holder fills a trade order by matching it with one or more opposing orders.
The order book is a ledger maintained by CoinQX.com to keep track of all current trade orders, which is used to fill orders. It consists of orders to buy or sell at a fixed price and orders to buy and sell at the best available price.
A bid is an order to buy in the order book and an ask is an order to sell in the order book.
This term refers to the difference in price between the highest bid and the lowest ask in the order book.
This term refers to the market’s ability to sustain relatively large market orders without impacting the price of the security. This considers the overall level and breadth of open orders and usually refers to trading within an individual security. For example, if the market for a stock is “deep”, there will be a sufficient volume of pending orders on both the bid and ask side, preventing a large order from significantly moving the price.
Base currency refers to the first currency that appears in a set while the Quote currency is the second currency in the pair. For example, in LTC/USD, LTC is the base currency while LTC is the Quote currency.
The value of a currency is determined by its comparison to another currency. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
An untouched order is an order that has not been processed yet while a touched order is an order that has only been partially completed.
The account ledger provides account holders with a history of all of their transactions and associated balances as a result of the transactions. The ledger shows the amounts, fees and what kind of transaction was conducted, credits and debits.
An order specifies what is being bought or sold, the size or volume of the order and how the order will be executed in terms of pricing.
A currency exchange requires one currency to be bought and one currency to be sold. On the order form, an account holder must determine whether they are buying or selling and then they must choose the desired currency pair. Keep in mind, if you are buying, the base currency will be bought and quote currency will be sold. If you are selling, the base currency will be sold and the quote currency will be bought.
The amount refers to the volume or size of the order meaning how much is bought or sold, but not what is being bought or sold.
Market Price refers to the lowest current ask price for buyers and the highest current bid price for sellers.
Best Average Market Price:
A market average is the general level of prices in a stock market as expressed by a basket of frequently traded assets or crypto-currencies. Market averages can be price-weighted or market-weighted. The prices of assets or crypto-currencies in a given market vary in terms of industry and frequency of trading, thus an order will be filled utilizing the best average market price, which typically consists of several of the lowest asks and several of the highest bids.
Types of orders:
Market order: A market order represents the best average market price
Limit order: A limit order represents a fixed or better price. A limit orders may hold a certain advantage over market orders because they can ensure a better average fill price. However, there is no guarantee the order will be filled completely or at all.
Stop Loss Orders: This order is used to limit your losses or lock in profits on a long or short position or to open a position.
Take Profit orders: On a long or short position, these orders are used to set a target price using an absolute price or a percentage. They can also be used to open positions.