What is a Take Profit Market Order?

Take Profit Market order in Atani

The take profit market order is a type of market order that allows traders to make a take profit purchase or sale at a target profit price by triggering a market order that executes that purchase or sale at the current market price of that token. This makes the take profit market order an immediate execution take profit, unlike the take profit limit market.

Basically, this type of order consists of two parts:

  1. A take profit price. This price is chose by the trader. This order intended to be the trigger for a limit order in the market. This order will be sent to the market to be filled at the market order price level.
  2. A market order, which is the one that allows us to buy or sell the asset. For this, the order use the market price of that asset within the exchange.

The objective of this type of orders is to obtain immediate profits in your entries or exits of the market.

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How to use a take profit market order in Atani?

To use this type of orders in Atani, you must first of all, have connected an exchange that offers support for this type of market orders. In this example, we will use Kraken. This exchange offers full support for this and other advanced types of market orders.

So, with your Kraken account active, you should go to the trading form section.

Creating a buy take profit market order in Atani

This option will allow you to use this type of orders within the application.

Creating a sell take profit market order in Atani

Once the option is enabled, you will be able to read the following data sections:

  1. Market Price, this indicates that the order will be placed using the market price of the selected cryptocurrency pair.
  2. Take Profit, this is the price that will be used as a marker to initiate the profit operation. With it you will be able to execute a market order associated with our take profit order.
  3. Total, where the total value of the purchase or sale in USD.

Curiosities of this type of trading order

Before choosing the Take Profit values, please note the following:

  1. The execution of the market order may not be execute exactly at the last market price. This is because, if the cryptocurrency price varies too fast, the exchange execution algorithm will execute the operation with the price according to the exact moment when your order is computed. In such a case, we invite you to review the trading history and check the final execution price of your order, especially if you see any discrepancy in the expected total.
  2. Using a take profit market order limits our ability to get a better price on our trade than when using a take profit limit order. This is because, in this type of order, risk management is the most important thing. And, the take profit market order, guarantees you a much better risk management when trading cryptocurrencies in highly volatile times.

Knowing this, to use this order you only need to enter the desired data, and mark the buy or sell with it. At that moment, Atani will send by API the order, and it will be taken in the enabled exchange to be carried out according to your conditions.

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