Buy as a MAKER (LOWER FEE) on Coinbase Pro - GDAX | Limit Order - Part 2

[@deeplizard]

Some related vids: Post only vs Allow taker on GDAX - kzbin.info/www/bejne/o4LYn4R7r514jpo #1 Order types and parameters - kzbin.info/www/bejne/rJ6VnHeppaeAjdk #2 Order matching engine - kzbin.info/www/bejne/r6C8qGiDna-ZkMk #3 Market orders - kzbin.info/www/bejne/eJm3oWWNqbx3aNU #4 Limit orders as takers - kzbin.info/www/bejne/mmqnZX6DebVnq6s #5 Limit orders as makers - kzbin.info/www/bejne/iZmqnK2tZ7CcrKs #6 Sell side stop orders and the delay condition - kzbin.info/www/bejne/qHe7aIKAedl-mMk #7 Buy side stop orders - kzbin.info/www/bejne/aHiah56ui9Skg9E steemit.com/cryptocurrency/@deeplizard/post-only-vs-allow-taker-on-gdax

[@DonnyS.]

EXACTLY what i've been searching for on youtube over a week now. Thanks for your clear and concise explanation with live examples. You have a talent for these intermediate beginner videos.

[@deeplizard]

Hey Donny - I appreciate that. You are welcome!

[@I5starjordan]

As someone who is fairly new to trading, your videos are the most informative I've seen so far. Thanks

[@deeplizard]

Great! I really appreciate you letting me know! Thank you for the feedback.

[@Gregoz987]

All KZbinrs take note: This is how you teach!

[@hitachino]

I've been watching Coinbase Pro vids for weeks now and I have to say you have best Coinbase Pro vids out there. Most people don't give examples and you give example after example until you execute what you are trying to teach which is great for beginners like me. I hope you update the vids now that the transition from Gdax is complete. You have a new subscriber! Thx!

[@robertatvitalitystar2444]

This duuude knows his stuff maaan : )

[@IH8Empos]

"the market was actually trending higher at that particular moment... HOPE THIS VIDEO WAS HELPFUL!" I got scared from the end haha helpful video thanks

[@deeplizard]

lol. Sorry about that. Had a bad audio day! Thanks for commenting!

[@sarys73]

Dude ty for this vid. 3rd night doing this and until about 30 mins ago I started getting rejected. Couldn't figure out why. Really appreciate you explaining it.

[@TaylorPhase]

Dang 3,800 a bitcoin. Cheap days lol

[@cryptoa.r8551]

DAMN! That was intense! At the very last part I almost fell out of my chair. HOPE YOU LIKE THIS VIDEO! LOL.

[@deeplizard]

Haha! This comment made me have to watch again. It was funny. When the trade happened, I could hear my chair because I jumped. Maybe I almost fell. lol. It was so tiring waiting for the trade to execute. KZbin flagged this comment as spam for some reason. No way! I accepted it. Great comment!

[@deeplizard]

Lol. And I went further to see what you mean. Had audio trouble on that day. haha.

[@CoCoGirl886]

New subscriber here! I'm new to gdax and loving all your detailed explanations and strategies. Looking forward to your new videos!

[@deeplizard]

Thank you for letting me know. Very happy to have you in the community. Really appreciate your feedback!

[@Walk.InHisWays]

I like how to you added in those edits to not confuse us. good looking out bro, really helped me out.

[@deeplizard]

No problem. Thanks for letting us know. Which edits do you mean, the dark shading around the irrelevant parts of the screen?

[@lileddy12]

Thank you for breaking this down. Continue making videos!

[@deeplizard]

Thank you! Working on it!

[@robbyzoom5453]

Nice videos man, thank you! Best order type explanation i found so far

[@deeplizard]

Thanks Robby. I appreciate that!

[@_van_Loon_]

Great video... I think it is easier to make money with limit orders on GDAX by paying fees. In this way which you present very clearly in your video you want the tradingprice to quickly dip which can result in a downtrend.

[@nickdibenedettoyt]

Even though I find you videos extremely straight forward so far, this one got me confused. So you are willing to re enter (and its corresponding order cancellation) the Order Book as manny times as needed not to pay Taker's fee while letting the price go up and paying a higher price for your asset? Makes me wonder how much is the Taker's fee.

[@Brookzee32]

You make me very happy with this video...No pun intended

[@su4scc]

Great video! Thank you!

[@TheEbulla]

great teacher.

[@deeplizard]

Thank you!

[@aaronbjorge3084]

At 7:40, there's a moment where the USD spread opens up to $1.xx; couldn't you also have made a limit order to buy at a price within that spread? I.e. the highest bid price plus $1? (Or + $.50, or anything)? As long as you post only.

[@deeplizard]

Hey Aaron - Nice observation. You've got it. You technically wouldn't even need to use post only. The order would post to the book as the NEW highest bid. Post only rejects orders that would fill by taking, in our case because we were buying, an ask off the book, and there are no asks inside the spread. Doing this without using code would be difficult. The prices are moving very quickly, and we would have to manually type in the price. This is where post only becomes helpful by making sure the price doesn't move on us before we submit. Great comment! Thanks!

[@RigoStar1931]

Great video. A bit fast but I understand why it was. Thanks!

[@deeplizard]

No problem. Thank you for letting us know! Have been trying to slow things down in the more recent videos. Let us know what you think of the speed in this one: kzbin.info/www/bejne/eJm3oWWNqbx3aNU

[@PetarStamenkovic]

Thank you for this video. It's very helpful.

[@dudley0007]

Hey intense video, definitely gave me a sense of what to expect in the rising price market. I'm just wondering what the calculation is that you use at 00:50 seconds to find out it's overpriced it? Thanks !

[@deeplizard]

Hey DDaqes - The “prefill all” option that GDAX provides (click the USD balance to indicate that you want to use the total balance) was over estimating the amount of BTC that could be purchased at the chosen limit price. The fee of 0.25% was added into the calculation and was pushing the amount over the total. 100 / 3886 * .9975 This may have been updated since the video. GDAX pushes out changes pretty often.

[@rosettastonedd9406]

How exactly is the last trade price determined though ? I mean, if the spread is always at least 1 cent, how do orders ever get filled without being a taker. Like, if someone is buying at 100.95 and someone is selling at 100.96 How is this price determined to go up or down. How is this compromise made

[@deeplizard]

RosettaStonedd - This is a really great question. The way you have expressed the question really illuminates how markets works. The order book can be thought of as a stand-off between buyers and sellers. These are the makers in the marketplace. As long as neither side gives in, the book will sit tranquil. No trades will occur. If a buyer wants in badly enough, the buyer must cross the book and take from the sell side. If a seller wants out badly enough, the seller must cross the book and take from the buy side. This is the bull/bear fight in action. Every trade is made by joining a maker with a taker. These videos cover this in more detail: #1 Order types and parameters | Trading fees and execution on GDAX #2 Order matching engine | Trading fees and execution on GDAX #3 Market orders | Trading fees and execution on GDAX These are in this list: kzbin.info/aero/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII Let me know what you think. 🚀

[@paulkolack4241]

Can I transfer bitcoin from coinbase to gdax and is that a good idea. Also, I cant, at the moment access coinbase-no phone verification code sent. Know anything??

[@deeplizard]

Hey Paul - Transfers between Coinbase and GDAX are instant and free. You do it from the GDAX side. Click deposit and you will see the Coinbase tab. The accounts are linked. It looks like their was an issue earlier today with the text message codes. You can check issues like that at this link: status.coinbase.com/ Past Incidents Feb 1, 2018 SMS 2FA Issues Resolved - This incident has been resolved.

[@domc4763]

Question, if you are sure that the price will rise moving forward, can you place a purchase limit order above the current price? If so when it reaches that price and the order tiggers, would there be a fee?

[@deeplizard]

If you place a limit order with a limit price above the current price, the order will execute immediately. See this one: kzbin.info/www/bejne/mmqnZX6DebVnq6s There will be a fee. To place an order above the market price, you must use a buy side stop order. See this one: kzbin.info/www/bejne/aHiah56ui9Skg9E Let me know if this helps.

[@domc4763]

Thank you and yes helpful.

[@abalegacyacademy9918]

Bro thanks to you. You video helped me to make 146780 dollars.

[@deeplizard]

🤑Wow! That's very good! Two questions: 1) Is that in USD? 2) Did you forget a decimal point between the 7 and 8? If yes to 1) and no to 2), then feel free to tip BTC here: 1AFgm3fLTiG5pNPgnfkKdsktgxLCMYpxCN 🙂 Nice work! 💰💰💰💰

[@abalegacyacademy9918]

Yes. That is USD. And I earned that money almost without sleep for 5 days in trading with 10000 dollars. No pain No gain.

[@abalegacyacademy9918]

Anyway I think that you are doing a super work learning people like me to become dreams a reality.

[@deeplizard]

I agree with that. No pain no gain.

[@abalegacyacademy9918]

You know? It will be great if you make videos about Robinhood app.

[@brianjoseph2303]

Thanks man, great job! Any tips for minimizing withdrawal fees? That would be sweet!

[@deeplizard]

Hey Joseph - THank you! If you are in the US, using ACH is the best way to withdraw. It's free.

[@TheMrmaid]

Great video. Thank you for this detailed description on how to use the limit order feature. I did exactly as you said and within a minute my order was filled. My question is even though I can see my order on the history tab when I look at my accounts I don't see any value in the BTC account, nothing available and no total. I only purchased a small amount just to test everything so I'm not sure if this is normal or is there a problem. Thanks again for your video and for any additional help you can provide.

[@deeplizard]

Hey Jim - I think you may be seeing a rounding issue in the balance section on the left. It looks like they are probably rounding to 2 decimal places there. As long as you see your transaction in the history and your balance is correct in the most recent transaction, you should be fine. The balance in the history table is a rolling balance with the most recent transaction holding the current balance. Additionally, you should see your BTC value on the main trading page in the order form section when you have a BTC order book selected.

[@TheMrmaid]

You were exactly right. I purchased more BTC following your instructions on using the limit buying technique and now see the total showing in the BTC account area. I needed to have enough BTC to reach the 2 decimal places in that area for it to show. How sweet is this to not pay any transaction fees!! Thank you once again for teaching me this technique. May the force be with you and may all your Cryptos reach the moon and beyond!

[@deeplizard]

Excellent! You are welcome! lol. Oort Cloud? 🚀 en.wikipedia.org/wiki/Oort_cloud

[@Trayg720]

how do you trade bitcoins for eth on gdax ? do you have a video showing that sir ?

[@deeplizard]

Hey Tray - I don't yet have a video for this. However, it's pretty easy. If you have BTC, you can buy ETH with it by selecting the ETH/BTC order book with the currency pair selector. On this order book, buyers bid with BTC and sellers offer ETH. Let me know if you have further questions.

[@Trayg720]

hey sir and thanks for responding back, I'm still confused I don't see the currency pair selector or know what to click on ?

[@Trayg720]

ohh I see all of the order books now, ok my question is why don't they have a LTC/ETH order book ? would I have to use coinpayments.net to switch LTC into ETH ?

[@deeplizard]

I haven't used that particular site before. However, you won't be able to do it with GDAX. You would have to go LTC > USD > ETH.

[@jodyb.640]

Awesome video series. Subscribed watched all fifty. Several videos multiple times. I am about to start studying the use of API for trading. API is a new topic for me. Will I be able to use API to get/keep my order at the top of the Orderbook in a rising market? Also, when are you going to put together a video about API? Is your Data Science videos a place to start learning this topic? Great channel, keep up the good work!!!

[@deeplizard]

Hey Jody - Great work and thank you! I appreciate that. Absolutely, that is a great use case for the API, a good first project. You are spot on with the Data science series. It's meant to be a prerequisite for the API series. Code is a very handy tool for trading, absolutely essential. What’s your experience with code? Are you just starting out?

[@jodyb.640]

Thanks Deeplizard for the rapid response. I have zero experience with code. This is going to be a new adventure for me. I totally agree with you about code being an absolute essential trading tool in todays markets. I hope the lingo in the world of programming is not to complicated for a beginner like me. I'm looking forward to your videos. Thank you.

[@annalevesque1063]

Why is it that sometimes when I click in the "can be bought" order book it assumes I want to sell, but sometimes it assumes I want to buy? It always switches back and forth when I click in the "can be sold" order book. Is there a reason for this?

[@deeplizard]

Ultimately, it’s just code that some developer wrote. It could be intentional or unintentional. It may be a bug in the code or more likely just a wacky design. They are probably assuming that, under certain conditions, a user would want to be a buyer/seller. The conditions they could be looking at are like the fiat/crypto balances or even the currently selected order type/order side. I think this is why we see this strange behavior. I've seen it too, and it always catches me off guard. Usually in software systems variations like these get confusing for developers and users. It would probably be better to keep it consistent. Both buyers and seller are concerned with the sell side of the order book for different reasons, so it makes sense both ways. However, something is off because we have both seen the code assuming the wrong way. We could probably uncover the parameter that's causing the varying behavior by tinkering with it. I just work around it for now. Nice observation. Hope these comments help. 🚀

[@annalevesque1063]

deeplizard crypto & ai Thank You! I've been fixated on it trying to find some sort of pattern... glad it's not just me haha

[@rentacowisgoogle]

Anna Levesque its a random function intended to trip up 3rd party trading bots or even macro scripts that operate independently from the official api. Otherwise there would be a million shitheads spamming the network with automated requests from any device they can beg borrow or steal that has a web browser. It's like a captcha but not as disruptive for when it's an actual human. You can easily program a Bot to deal with it but that adds precious milliseconds to the operation meaning your bot will not be able to take advantage of the reason for using automation, speed and accuracy you blend in and bleed out so the exchange keeps you around since the more you try, the better for them.

[@deeplizard]

rentacow, This is an interesting perspective. Do you have inside knowledge of this? I think it's interesting, but also highly unlikely that GDAX would intentionally sacrifice user experience to deter bots. Additionally, these types of bots do not need to click the order book to pre-fill orders to carry out their tasks . Can you provide clarity on these points?

[@birdistheword1226]

bc is now ~9100 USD. Is there any way of knowing how many maker orders are there at say 3000 USD ? Any websites or softwares

[@Nick2014B]

Is there a way to exit a trade and not get the taker fee

[@StanwoodSpartans]

I'm a little confused on limit trading. My order should've paid me $10 perfect, but ended up paying me $10.31. Why was I paid the extra 31 cents? I'm happy i made extra money, but how did it happen?

[@deeplizard]

I can't say for sure. The amount of $ you get depends on the execution price and the quantity you are selling. Dig around in your reports section to see if you can see the cause of the discrepancy. Everything should add up minus fees.

[@echosquest]

nice vids still grappling with using GDAX/Coinbase pro without being able to draw or setup the markers or what ever. And still Dont understand how people make any money on small trades because of the .50% per transaction now, but i see thousands of them constantly.

[@Lorenzo-cf5qy]

When my order is filled *with post only* it still changes a fee

[@cdv130]

I think fee structure must have changed for coinbase pro/GDAX. This video is from 2017. Now you need at least 50million in prior trade volume to not get charged any fee as a maker.

[@hashemsmoney7904]

Love your videos!! Extremely informative. I don't understand though why I was charged a fee for a few bucks on both limit orders and stop orders that I made. Any thoughts?

[@deeplizard]

Thank you! To get the free execution, the order needs to be a maker. This means that it makes liquidity on the order book. Maker status of the order depends on the limit price at the time the order is submitted. For a buy order, if the limit price is above any asking prices on the sell side of the order book, the order will be matched immediately taking those existing orders off of the order book (taker). For a buy order to be a maker, the limit price has to be at or below the best bidding price on the book. This means that the order will not be matched immediately because there are no asking prices that can be used to make the match. As a result, the order will join the buy side of the order book making liquidity (maker). In this case, an execution doesn't happen immediately, and the order must wait on the book for a selling to take it off the book (taker). Stop orders are always *TAKERS* . The stop order is just a delayed market order. The market order is delayed until the stop price is triggered. Stop limit orders are usually *TAKERS* as well. Stop limit orders are delayed limit orders. An actual order is not submitted to the order book until the stop price is triggered. When the trigger happens, a limit order is placed. Usually, we set our limit in such a way that we will get an immediate execution (taker). This is because we don't want our order to be stuck on the order book waiting for a taker. Let me know if this helps! Edits in *Bold*

[@hashemsmoney7904]

Thank you very much for explaining!

[@per_feal709]

"Stop orders are always makers. The stop order is just a delayed market order. " If I understand this correctly, than "Stop orders are always TAKERS". Cause like you said before "market orders are always takers with fees" and since stop order is just delayed market order... Anyway, thanks for clarifying that.

[@deeplizard]

No problem Hashems. Please see the edits in bold. I incorrectly said maker when I should have said taker.

[@deeplizard]

Logiq Pierre, Very good! Thank you catching that error! I have updated the comment with the correction.

[@svengalilord]

In hindsight, wouldn't you have been better off paying 0.3% taker fee at the lower price than buying at higher price as maker?

[@deeplizard]

Hey Mark - I didn't check the math in this example, but in general you are correct. That's the trade-off we face when deciding weather to be a maker or taker. The lower fee for makers is no free lunch especially in fast moving markets.

[@svengalilord]

It is a tough call. Obviously, it is best to do without commissions, but perhaps gauge the order history and when there are so many buyers, bite the bullet and be a taker

[@chrisfist4133]

Love the Video's Thanks for helping me out! Take care! p3ace!

[@deeplizard]

No problem. You are welcome! p3ace! ☮

[@Ogusie]

i deeplizard, can you help me with my GDAX trading problem? i will need to send you screen shots though. i want to cancel this 'Fills' order and return the eth to my coinbase wallet. The status of the order says 'Filled'.

[@deeplizard]

Hi franfay, If the status of the order says "filled", this means that the order has executed and can no longer be canceled. If you were selling ETH, you should have more fiat in your account. If you were buying ETH, you should have more ETH in your account.

[@deeplizard]

You can send screenshots to: [e-mail] Make sure you try refreshing your browser if you don't see your balance updating.

[@Ogusie]

Thanks for replying. i am not sure what is happening because nothing is showing in my account, i have sent support ticket.

[@deeplizard]

No problem. Yes - this sounds like some type of technical issue.

[@michelep-vertigo7822]

Hi, how can I buy btc with eth on gdax? thank you

[@deeplizard]

Hey Michele. Here are the steps: 1) Choose the ETH/BTC pair. 2) Configure a sell order for the total amount of ETH you want to sell. 3) Place the order. When this order executes, you will be selling ETH and receiving BTC. This seems a little backwards right? 🙃 This is just because the order book is an ETH order book priced in BTC. Sellers on this book are offering ETH and buyers are bidding with BTC. Since you have ETH, you should enter the book on the sell side. If the book was a BTC order book priced in ETH, you would bid with your ETH to buy BTC. #1 in this playlist touches on this: kzbin.info/aero/PLZbbT5o_s2xozgvFCx7Szh_rwH9GQWgXU Great question. I hope this helps! 🚀

[@michelep-vertigo7822]

Thanks !!

[@BillsSpamMail]

How can people trust a platform that can't be bothered to fix blatant bugs? Think how bad the rest of the code could be.

[@deeplizard]

Hey Texas. Which bug are you referring to?

[@BillsSpamMail]

deeplizard For one, the one you mention at 0:48 in the video. Another is that when an order completes they don't update all the locations on the screen sometimes. I have frequently had orders in both the open and fills section at same time. I glance at that and occasionally think it has not filled. I saw that at 9:42 in the video. The worst in my opinion is that if you go to Fills in the Menu nowhere in the listing are the fees listed. Drill down on an item in the Fills list and the fees still are not shown. I like Bittrex better because when you submit your order it confirms (no accidental submissions) and that shows the amount of the fee. Speaking of flaws in exchange interfaces, do you know how to record for the IRS the fiat value (e.g. USD) when ETH or BTC or LTC is used to purchase something like IOTA, etc.? I don't see anything to set the USD value of the exchange. The IRS will not be happy if I say my BTC increased in value by 4 IOTA coins less $450 paid for the BTC.

[@darkjyh]

Why don't you just set the price at the last selling order ? Your order would be filled in no time....

[@deeplizard]

If we did, we would take the last selling order off of the book. This would make our trade a taker, and this would incur a fee. Fees are 0% for orders that are makers.

[@Brookzee32]

This dude clearly did not watch the video

[@PurpleSixBeats]

Now there are fees, sucks.

[@ArturoGarzaID]

Yeah, but you got to make sure you're in profit, when you sell.

[@nicholasanderson9019]

great video. also you sound like you should do voiceovers for ghost recon

[@deeplizard]

Haha. Thanks for letting me know! 🤣

[@laurennoyb539]

I have lots of questions. Good videos. Could u email me please. I need a tutor or at least answers. Thanku!!

[@deeplizard]

Hey Lauren - Please ask any questions on the videos. This keeps them public for others to see and benefit from. :)

[@tonyditirro3003]

Great vid, but holy cow, I think you should talk faster....