Order Types on Arkham Exchange

Arkham Exchange supports multiple order types, allowing traders to control how and when their trades are executed. The three main order types are Market Orders, Limit Orders, and Take Profit/Stop Loss Orders.

Market Orders

A Market Order executes immediately at the best available price in the Order Book.

How it works:

• When you place a market buy, your order matches against the lowest available sell orders.

• A market sell matches against the highest available buy orders.

When to use:

• Entering or exiting a position quickly.

• Prioritizing speed over exact price.

Example: You want to buy 1 BTC right now. The current best ask in the Order Book is $30,050. By placing a Market Buy, you purchase at $30,050 instantly, regardless of whether the price moves shortly after.

Market Orders guarantee execution, but not price. In volatile conditions, slippage may occur if liquidity is thin.

Limit Orders

A Limit Order sets the exact price at which you want to buy or sell. The order will only execute if the market reaches your chosen price.

How it works:

• Limit Buy executes when the market falls to your chosen buy price.

• Limit Sell executes when the market rises to your chosen sell price.

When to use:

Seeking a better entry price than the current market. Placing orders ahead of time at target levels.

Example: BTC trades at $30,000. You place a Limit Buy at $29,500 for 1 BTC. If the price falls to $29,500, your order is filled. If not, it remains open until you cancel it.

Limit Orders guarantee price, but not execution.

Take Profit and Stop Loss Orders

Take Profit (TP) and Stop Loss (SL) are conditional orders used for risk management. They automatically execute a Market or Limit order when price crosses your trigger level. Stop Loss Order: Protects against downside. If price moves against you, the order automatically sells (for longs) or buys (for shorts) to close the position. Take Profit Order: Locks in gains by automatically closing a position once a profit target is reached.

Example:

You are long 1 BTC at $30,000. You set: Stop Loss at $28,500 → if price drops, your position closes automatically to limit losses. Take Profit at $32,000 → if price rises, your position closes automatically to lock profit.

TP/SL orders allow traders to define their risk and exit strategy without constant monitoring.

Key Takeaways

• Market Orders: Instant execution, but subject to slippage.

• Limit Orders: Exact price control, but not guaranteed to fill.

• Take Profit / Stop Loss Orders: Essential risk management tools that automate exits.