#4 Limit orders as takers | Trading on Coinbase Pro - GDAX

[@deeplizard]

Other related videos: #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 All in this list: kzbin.info/aero/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII

[@stephenglancy6868]

I have watched every single video on this playlist. Thank you so much for putting all of this together. It is SO helpful in understanding how to use GDAX. I was afraid to do anything on the exchange before watching these videos. Now I have a lot more confidence.

[@deeplizard]

Hi Stephen, One of the motivations behind these videos is to help empower individuals willing to put in the work, so this is really great to hear! Thank you for sharing your experience and for watching all the videos! Awesome! 🚀

[@MeticulousGuitarist]

This is great how you methodically breakdown each possible order. I'm excited to keep watching!

[@jnmediaproduction162]

Best explanation I could find. Thank you. Helped me a lot.

[@morgoermanger3085]

You really need more subscribers, such a informative video. Keep it up!

[@yannhijazi]

Thanks. Great video.

[@deeplizard]

Thanks Yann!

[@asfbi]

so if you want to buy or sell during a nose dive or spike this would be ideal so you know what youre limit is in summary..

[@deeplizard]

You've got it. Thank you for your comments! 🚀

[@davej5880]

Hi there Deeplizard, I’m new to crypto’s and have been using the GDAX/Coinbase pro website. I’ve been watching your videos about limit orders and I’m confused on how exactly that works. If you were to buy BTC at a certain price, does GDAX use your linked bank account to buy btc or does it use your USD funds on the website?

[@deeplizard]

Hey Catch J - Coinbase Pro operates on a cash basis, this means the funds have to be on the website before you can trade. There's a lot of info about how the order types work in this series here: deeplizard.com/learn/playlist/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII Hope this helps.

[@alexandersandino1988]

So the only difference between the "Market" tab and the "limit" tab with the "allow taker" selected is only to avoid slippage basically ? Uhh, is it safe to say that when people use the "limit" tab it's mostly to be a "maker" ?

[@deeplizard]

In general, the answer to both of these questions is yes. However, it's a good practice to always use limits. In addition to slippage, fast moving markets and order books with wide spreads are reasons to avoid market orders. Remember, market orders can be filled at any price.

[@chrisferrell2663]

Has this changed? As long as I've been using gdax (I think as early as late november '17) if I try to place a limit buy order at a price above the spot price it gives me an error. same for if I try to limit sell below the spot price.

[@deeplizard]

Hey Chris - This has changes a bit. GDAX changed the default to post only. Now, we must choose "allow taker". Otherwise, the order will be rejected. This one covers the new options: kzbin.info/www/bejne/o4LYn4R7r514jpo Hope this helps.

[@samdroidva]

Today is 12/30/2017. When I try to setup a "Buy Buy" Limit order, The Limit Order Automatically Gets re-hilighted as a "Buy Sell" Limit order when I click on a price on the Sell side from the order book. Is this because of the "Post Only" Check box? I tried unchecking this box but it still re-highlighted itself as a "Buy Sell" Something has definitely changed since this video was posted.

[@deeplizard]

I don't think I used the "click" functionality in this video. I manually typed type values into the fields. Try clicking the price and the size on the order book. Those two give you different behavior depending on which side of the book you are clicking. I'm not sure if "post only" causes that behavior to vary.

[@samdroidva]

When I click on the "Market Size", it gets switched from a Limit order to a Market order :( However, even if I manually type a price in from the Sell Side it gets rejected when I click "Place Buy Order" :(

[@deeplizard]

Yes. I don't think their pre-fill functionality is very robust. The rejection will happen if you have "post only" mode selected.

[@whateverreviews3965]

hi, Good presentation. I have a question. What if i want to place a sell limit order by far lower than the market price? For example the market price is $100 for litecoin and i want to set a sell limit for $90. If i do that with sell limit would it sell it right away or wait until the market price hits my limit? Or does it mean that i would accept any price higher than my sell limit? I know stop limit section works for but then they cut a fee for that.

[@deeplizard]

Hey WR - Thank you! If you do that, it would sell right away. The order would be “allowed” to fill at *any price* higher than your sell limit price. However, the order will fill at the highest bidding price on the book that is higher than your sell limit. This bid is known as *the best bid*. The the GDAX order matching engine specifies this behavior. More on that here: kzbin.info/www/bejne/r6C8qGiDna-ZkMk There is now easy way to avoid the fee when stopping a loss automatically. Hope this helps.

[@whateverreviews3965]

Thank you. I have tried and system doesn't let you to place a limit buy order much more than current market price and a limit sell order much less than the market price. So it is strictly for trying to get the crypto from cheaper price or sell it for higher price or around the market place value. So if you want to do what i was asking the only option looks like stop order. Am i missing anything?

[@deeplizard]

Hey no problem. Yes. You've got it. The only option is the stop order.

[@SignsFromHeaven]

Another High Quality Video! Awesome graphics! May I ask what video editor you use?

[@deeplizard]

Thank you! I really appreciate your feedback and support! The video editor is called Camtasia. Here's the link where you can check it out: www.techsmith.com/video-editor.html 🚀

[@travelemail215]

When working with larger amounts of money why would you want to be a taker and have to pay the fees? What is the advantage of this over just doing a limit sell or limit buy post only and always being the maker?

[@deeplizard]

The advantage of being a taker is *immediate execution/fill*. Maker orders that are sitting on the book require taker. If not takers exist, the maker order must sit and wait. While the maker is waiting for a taker, the price can move away from the maker's limit. The maker will have to *chase* the price making the order more attractive for potential takers. If this so-called *chase* or movement in price is greater than the 0.25% taker fee, then the savings are in vain. In general, deciding to be a maker or taker, depends on the market conditions and whether we are buying or selling. If there are more buy side takers than sell side takers, the buy side makers will be left in the dust. This video demonstrates this type of scenario: kzbin.info/www/bejne/fYLOqX2qd65jgNE Let me know if this makes sense. Great question! 🚀

[@travelemail215]

Thanks. I appreciate the response. That's kind of what I was thinking. Now, with experience, I will have to figure out different situations that this would be beneficial for me based on what the fee is vs getting in the game. Great job on the videos and the easy to understand instructions.

[@bwright4410]

If i post a sell limit parameter but cancel it before the order is filled. Will i still be charged a fee?

[@deeplizard]

You should not get a fee in this case. Fees are based on actual executions (fills).

[@bwright4410]

@@deeplizard also what about with a partial fill, lets say i have a partial fill and then i cancel the order off the books. Would I have that partial transaction in my wallet? Or does it cancel the entire order? Thanks in advance

[@deeplizard]

Consider the partial fill a done deal. In other types of trading, e.g. stock trading, there is an order parameter called all-or-none (AON). In this case partial fills aren't possible. The order will only be matched if all the quantity is covered. I haven't seen this parameter with any crypto exchanges yet.

[@Baker5874]

I don't understand how you get fees with limit orders lol. I have been using them for months and I couldn't even do it by accident.

[@mathewstreet]

Are they Limit and Post??

[@deeplizard]

No. They are limit and *NOT* post. Limit orders that are takers never post to the book. They take from the book. If a limit order posts to the book, then they are makers on the book. If we select _post only_ the orders in this video would have been rejected. Let me know if this makes sense. 🚀

[@mathewstreet]

That is how I understood it but you didn't show that so I wanted to verify I was not doing something wrong

[@deeplizard]

Okay. I see. Perfect. This video was getting a bit long, so the maker limit orders will be covered in the next video. The buy-buy and sell-sell permutations will be makers. If the limit price is on the same side of the order book as the side the order is on, the order will be a maker joining the book. Anytime you have a question, just ask.

[@mathewstreet]

Cool, not long at all and waiting on the next ones. How did you trade on this with under $100 in USD buy buy with $120?

[@deeplizard]

I'll keep that in mind. I usually look at 10 minutes as the upper limit. I'm not sure what you mean. When did you see $120?

[@fasthackm]

HUH? I'm weary about leaving my STAKES un-attended while I sleep. I need to be attentive @ ALL HOURS!

[@cheatman05]

I'm pretty new to crypto, and as I was watching the video there was one thing I could not wrap my head around: what if I place a make order that is rather large in size, and while it is being filled the market price moves away so much that it stops getting filled in a partial state? What can someone do with a partially filled order? Is it a common thing?

[@deeplizard]

Hey Cheatman - Partially filled orders are common especially if an order is larger than the supply on the book at a given price. If an order is partially filled, the remaining part of the order will sit on the order book waiting for a match. These two videos might help shed more light on this issue: Slippage: deeplizard.com/learn/video/oYZNZX5lZFY Order matching engine: deeplizard.com/learn/video/yoYw5MhJfZg

[@cheatman05]

Thank you! And I'm glad I found your videos, I learned a lot from them!

[@jdjds1]

It’s funny when u say scent

[@deeplizard]

🤣 My bad ...

[@jdjds1]

I want to trade but I have a question about limit orders, your really smart dude

[@grapeape16]

Need to quickly learn Limit orders so I can set one for my SHIBA INU and go to bed with no anxiety, hurry hurry hurry!!

[@furyofbongos]

When more than one cent, we call that plural, and that means you put an 's' at the end, so you say "100 cents" not "100 cent"

[@deeplizard]

Thank you. I will work on this. I did some follow up, and I agree: english.stackexchange.com/questions/129379/using-plural-when-referring-to-cent-and-cents

[@furyofbongos]

Forgot to say that I learned a lot of valuable stuff from your videos, thanks!