Understanding Exchange Order Types: A Complete Guide for Gold and Crypto Traders

Trading gold and cryptocurrencies can feel complicated at first, but understanding the different types of orders available on an exchange is one of the most important skills for a successful trader. 

On Kinesis Exchange, you can choose from six main order types, each designed to help you buy or sell under specific conditions. This guide explains each order type in simple terms, with examples, so even beginners can confidently navigate the market.

Order types on the Kinesis Exchange

The Kinesis Exchange offers six key order types: 

• Market Order
• Limit Order
• Stop Limit Order
• Stop Market Order
• Trailing Stop Limit Order
• Trailing Stop Order

Each type serves a distinct purpose, providing gold and crypto traders with flexibility to buy or sell assets at the right moment under specific conditions.

Understanding these can make your trading more strategic and less reactive, allowing you to take better advantage of market opportunities.

What is a Market Order?

A market order is the simplest type of order. When you place a market order, you are buying or selling immediately at the current market price available. The priority is execution, not price.

Market orders are useful if you need to enter or exit a position quickly. However, the final price you get may vary because the order is filled at the best available prices, which can include multiple price levels if your order is large.

Example: If the bid (buy) depth is:

Amount	Price	Total
1 gold (KAU)	$200	$200
3 gold (KAU)	$190	$570
1 gold (KAU)	$220	$220

And you place a market order to sell 7 gold (KAU):

• 1 gold (KAU) sells at $200
  
• 3 gold (KAU) sell at $190
  
• 1 gold (KAU) sells at $220
  
• Because no remaining buy orders exist for the remaining 2 gold (KAU), they are returned to your balance.

Market orders are dependent on available buyers and sellers, and in fast-moving markets, the executed price may differ from the last quoted price.

What is a Limit Order?

A limit order lets you set the exact price at which you want to buy or sell. The order will only execute if the market reaches your specified price. This gives you more control over the trade compared with a market order.

Limit orders are ideal if you are willing to wait for a particular price rather than entering the market immediately. However, if the market never reaches your price, the order may not be executed.

Example: You want to buy gold (KAU) at $190. You place a limit order to buy at $100. The market is currently at $200. Your order will only execute if the price falls to $190 or lower.

Limit orders are useful for controlling risk, entering at favourable prices, and avoiding paying more or selling for less than your target.

What is a Stop Limit Order?

A stop limit order combines a stop price and a limit price. Once the trigger (stop) price is reached, the order becomes a limit order to buy or sell at your set price or better.

This is useful for managing trades in volatile markets, giving precise control over the execution price while still activating automatically once a market condition is met.

Example: You hold gold (KAU) at $200 and want to sell if the price falls to $195, but you do not want to sell below $194. You place a stop limit order:

• Stop price: $195 (triggers the order)
  
• Limit price: $194 (lowest acceptable sale price)

If the market drops to $195, your order becomes active. It will only sell at $1950 or better (not below $194).

What is a Stop Market Order?

A stop market order also activates when a specific price is reached, but it becomes a market order rather than a limit order. This ensures execution, although the final price may differ from the trigger price, especially in fast-moving markets.

Stop market orders are typically used to protect gains or prevent excessive losses.

Example: You hold gold (KAU) at $200 and want to sell if the price drops to $195. You set a stop market order at $195. Once the price hits $195, your order executes immediately at the best available prices, ensuring a sale.

What is a Trailing Stop Limit Order?

A trailing stop limit order is a dynamic order that follows the market price by a set amount or percentage. It moves with the market, helping you capture gains while limiting losses. When triggered, it becomes a limit order at your defined price.

Example: You buy gold (KAU) at $200 and set a trailing stop limit with a $5 trail. If the market rises to $210, the stop price moves up to $205. If the price then drops to $205, your order triggers as a limit order, helping lock in profits.

What is a Trailing Stop Order?

A trailing stop order functions similarly to a trailing stop limit but becomes a market order when triggered. This ensures execution, even if the market moves rapidly, though the final price may differ from the stop price.

Example: You hold gold (KAU) at $200 with a $5 trailing stop. The price rises to $210, moving the stop to $205. If the price then drops to $205, your order executes at the best available price. This protects profits automatically while adapting to market movements.

For an even more in-depth breakdown of all order types available on the Kinesis Exchange, explore our knowledge base – here.

Understanding and using different order types is key to successful trading. Market and limit orders offer basic control and precision, while stop and trailing orders help manage risk and secure gains in volatile markets.

By learning how each works, even beginners can trade gold and cryptocurrencies with confidence on Kinesis Exchange.