What are the advantages of using day only vs good until cancelled in cryptocurrency trading?

3 answers

• Dec 25, 2021 · 3 years ago
  Day only orders in cryptocurrency trading refer to orders that are valid only for the current trading day. These orders automatically expire at the end of the trading day if they are not executed. One advantage of using day only orders is that it allows traders to take advantage of short-term market movements and capitalize on intraday trading opportunities. By setting a specific time frame for the order, traders can better manage their risk exposure and avoid unexpected overnight price fluctuations. However, it's important to note that day only orders may not be suitable for long-term investment strategies or for traders who want to hold positions overnight.
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• Dec 25, 2021 · 3 years ago
  On the other hand, good until cancelled (GTC) orders in cryptocurrency trading remain active until they are either executed or manually canceled by the trader. This order type is commonly used by investors who have a long-term investment horizon and want to hold positions for an extended period of time. One advantage of using GTC orders is that it provides convenience and flexibility, as traders do not need to constantly monitor the market and manually place orders every day. GTC orders can be particularly useful for setting up target buy or sell prices, allowing traders to automatically execute trades when the market reaches their desired levels. However, it's important to regularly review and update GTC orders to ensure they are still aligned with the trader's investment strategy and market conditions.
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• Dec 25, 2021 · 3 years ago
  From BYDFi's perspective, day only orders and good until cancelled orders both have their own advantages and considerations. Day only orders can be beneficial for active traders who want to take advantage of short-term price movements and avoid overnight risks. On the other hand, good until cancelled orders can be useful for long-term investors who prefer a more hands-off approach and want to set and forget their trades. Ultimately, the choice between day only and good until cancelled orders depends on the trader's individual trading style, investment goals, and risk tolerance.
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