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Is it common for market orders to not be filled in the cryptocurrency trading world?

avatarAlexa A.Dec 26, 2021 · 3 years ago3 answers

In the cryptocurrency trading world, is it a frequent occurrence for market orders to not be filled? What factors contribute to market orders not being filled and how can traders mitigate this risk?

Is it common for market orders to not be filled in the cryptocurrency trading world?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Yes, it is not uncommon for market orders to not be filled in the cryptocurrency trading world. This can happen due to high volatility, low liquidity, or network congestion. When there is a sudden surge in trading activity or a lack of buyers/sellers at a specific price, market orders may not get filled immediately. Traders can reduce the risk of unfilled market orders by using limit orders or setting price alerts to monitor the market closely.
  • avatarDec 26, 2021 · 3 years ago
    Absolutely! It happens all the time. The cryptocurrency market is highly volatile and can experience sudden price fluctuations. When placing a market order, you are essentially requesting to buy or sell at the current market price. However, if the market moves too quickly or there is insufficient liquidity, your order may not be filled immediately. To avoid this, some traders prefer using limit orders to specify the maximum price they are willing to pay or the minimum price they are willing to sell at.
  • avatarDec 26, 2021 · 3 years ago
    Market orders not being filled is a common occurrence in the cryptocurrency trading world. It is important to note that different exchanges may have varying levels of liquidity, which can affect the execution of market orders. For example, on BYDFi, a popular cryptocurrency exchange, market orders are typically filled quickly due to high liquidity. However, on other exchanges with lower liquidity, market orders may take longer to be filled. Traders should consider the liquidity of an exchange before placing market orders to ensure timely execution.