Welcome to Blocktane 101, a series of posts where we teach more and in-depth financial themes.

Trade verb (Merriam-Webster)


  •  to give one thing in exchange for another

  •  to engage in the exchange, purchase, or sale of goods

  •  to have dealings: NEGOTIATE

  •  to make an exchange of

  •  to engage in frequent buying and selling of (stocks, commodities, etc.) usually in search of quick profits

As a trading platform, Blocktane enables blocktaners to trade digital assets. As you can see by the above definition of the word, each negotiation involves two sides: buyer and seller. Historically, buyers want to pay less for larger volumes of a certain asset; sellers want to be paid more for less volumes of that asset – therefore creating two sides of an order book. When one selling order matches the conditions of one or more buying orders (or vice-versa) a trade is complete.

There are two order types: Market Orders and Limit Orders

  • A Market Order is executed instantly by consuming the first order(s) on the opposite side of the book until it is fully filled. Although instant, this order type might result in a price slippage*
  • A Limit Order is only executed when matched with orders of the exact same conditions on the opposite side of the book. Consequently, this order type might take longer to be filled. Blocktaners might insert orders to be sitting indefinitely on the order book waiting for the market to reach their desired price.

Glossary:

- Trade Wall: The price shown between the buy record and the sell record is commonly referred to as the Trade Wall, and acts as a guide to market relevance. Book Depth, in turn, refers to the number of different value layers available at a given time.
-Bid-Ask Spread: is how much the value asked for exceeds the value offered in a given market.
-Price Slippage: The discrepancy between the expected price of a transaction and the final price of the transaction.

After an orientation to advanced trading, the next step would be to learn about bot trading, which is done faster and in higher volumes. With a few clicks it is possible to configure a robot to perform trades automatically, following buy and sell requirements. Blocktane is one of the few exchanges authorized and automatically integrated with Hummingbot, the best tradingbot on the market. However, we always remember that the human factor is indispensable for any trader - analyzing charts, searching for knowledge, and updating yourself with daily research are not tasks for bots!

Here at Blocktane, we always recommend good research before any transaction - both about the tokens, the market, financial positioning and more. Now that you know where to start in this ocean of trading, how about making your first buy or sell order in advanced trading?