SwissBorg Announces the Beta Version of Limit Orders: Enhancing your Trading Experience

At SwissBorg, we are dedicated to empowering our users with advanced tools and features to maximise their trading potential. Today, we are thrilled to announce the release of the long-awaited Limit Orders to everyone. They are currently available for a limited number of pairs in the SwissBorg app, but they cover an important portion of most portfolios. This powerful new feature allows you to take full control of your trading strategy, providing precision, planning, and predictability in your investment decisions.

What are Limit Orders?

Limit Orders are a type of order that allows you to buy or sell a cryptocurrency at a specific price or better. Unlike market orders, which execute immediately at the current market price, limit orders enable you to set the exact price at which you are willing to buy or sell. This means you can strategically place your orders to buy low and sell high, optimising your investment outcomes.

How Do Limit Orders Work?

When you place a limit order, you specify the price at which you want to execute the trade.  The trade will only execute for a buy-limit order, if the market price drops to or below your specified price. Conversely, for a sell limit order, the trade will only execute if the market price rises to or above your specified price.

When you place a Limit Order, you specify two attributes of your buy or sell:

1. The Price: The exact price at which you want to buy or sell the asset.
2. The Quantity: The amount of the asset you want to trade.

Here’s an example to illustrate how limit orders work:

• Buy Limit Order: Suppose you want to buy Bitcoin (BTC) and its current market price is €40,000. You believe that the price will drop to €38,000. With a buy limit order, you can set your purchase price at €38,000. Your order will only be executed if the price of BTC falls to €38,000 or lower, ensuring you buy at your desired price.
• Sell Limit Order: Imagine you hold Ethereum (ETH), which is currently priced at €2,500. You anticipate that the price will rise to €3,000. By placing a sell Limit Order at €3,000, your ETH will only be sold if the price reaches €3,000 or higher, allowing you to sell high and maximise your profits.

Key Benefits of Limit Orders

Precision

Limit orders provide unparalleled precision in your trading strategy. You can set the exact price at which you want to buy or sell, ensuring that you do not miss out on your target price. This level of precision helps you make informed decisions and execute trades based on your analysis and market conditions.

Planning

With limit orders, you can plan your trades in advance. Whether you are looking to enter the market at a lower price or exit at a higher price, limit orders allow you to set your strategy and let the market come to you. This proactive approach helps you avoid impulsive decisions and stick to your investment plan.

Predictability

Limit orders offer predictability in your trading outcomes. By setting predefined prices, you eliminate the uncertainty of market fluctuations and execute trades only when your conditions are met. This predictability enhances your ability to manage risk and achieve your financial goals.

Getting Started with Limit Orders on SwissBorg

To use Limit Orders in the SwissBorg app, follow these simple steps:

1. Open the SwissBorg app and navigate to the Invest tab
2. Choose the “Limit Order” option.
3. Select the asset pair you wish to trade.
4. Enter your desired price and quantity.
5. Confirm your order.

With these steps, your limit order is set and will execute once the market conditions meet your specified criteria.

Available trading pairs for Limit Orders 

Currently the following pairs are available for setting up Limit Orders:

• BTC/EUR
• ETH/EUR
• XRP/EUR
• XRP/GBP

Adding more pairs will be subject to further research and beta-testing phase results.

Tips for Placing Your Limit Order Price

Now that you know how Limit Orders work and the benefits they offer, the next step is learning how to set your limit prices effectively. Here are some tips to help you place your limit orders at optimal price points:

1. Analyse Market Trends

Before setting your limit order, take some time to analyse market trends. Look at historical price data, trends, and patterns to understand how the asset has been performing. Tools such as moving averages, support and resistance levels, and other technical indicators can help you identify key price points.

Example: If Bitcoin has consistently bounced back from a support level at €28,000, this might be a good price to set your limit buy order.

2. Set Realistic Price Targets

Set price targets that are realistic based on current market conditions. While it might be tempting to set very low buy prices or very high sell prices, these orders might never execute if the market doesn't reach those levels.

Example: If Ethereum is trading at €2,500, setting a buy limit order at €2,000 might be unrealistic in a stable market. A more achievable target might be €2,400 or €2,300.

3. Monitor Market News and Events

Stay informed about market news and events that could impact asset prices. Setting your limit orders in anticipation of these events can help you capture favorable prices.

Example: If a major upgrade is announced for a blockchain network, you might expect the price of its cryptocurrency to rise. Setting a buy limit order slightly below the current price can help you catch any dips before the anticipated rise.

4. Diversify Your Orders

Rather than placing a single large order, consider spreading your trades across multiple limit orders at different price points. This strategy, known as "laddering," can help you average your entry or exit prices and reduce the impact of market volatility.

Example: If you're looking to buy Bitcoin, you might place limit buy orders at €28,000, €27,500, and €27,000. This way, you accumulate the asset at an average price rather than betting on a single price point.

5. Use Support and Resistance Levels

Support and resistance levels are key price points where an asset has historically had difficulty moving below or above. Placing limit orders near these levels can increase the likelihood of your order executing at a favourable price. You can check the support and resistance levels in the Asset Analysis section from the Learn More page of each token.

Example: If Ethereum has shown strong support at €2,200 and resistance at €2,600, setting buy limit orders near €2,200 and sell limit orders near €2,600 can be an effective strategy. 

6. Use Average Buying price as a reference

Average Buying Price (ABP) gives you a reference of the price of your previous purchases. Place limit orders below the ABP to improve your overall cost of holding the asset, or above ABP to take profits.

Example: If your BTC ABP is 45,500, you might want to place buy Limit Orders below, at key levels such as 42,000 or 40,000 to catch a potential price swing down. Alternatively you can place Limit Orders above your ABP, for example around the all-time high price. Hint: You can place both buy and sell Limit Orders below and above your ABP, at multiple price levels, and catch market swings in sideways-moving markets.

FAQ

What's the difference between a Limit Order and a Smart Exchange?

Unlike market orders, which execute immediately at the current market price, limit orders enable you to set the exact price at which you are willing to buy or sell. This means you can strategically place your orders to buy low and sell high, optimising your investment outcomes.

Is there a fee for using Limit Orders?

Just like Instant Exchanges, SwissBorg charges a service fee based on your premium membership level. The estimated amount of your Limit Order already includes Service Fees. Additional execution fees will be charged by the execution platform. Be aware that service fees might change over time and therefore over the life of your Limit Order. 

Due to the rounding constrains imposed by the executing exchange, the final executed amount may be slightly lower than the actual order amount and any remaining locked funds will return to your main wallet.

How can I monitor the status of my Limit Orders?

You can monitor the status of your Limit Orders through the Limit Order dashboard available from the Invest tab. This dashboard shows active and completed orders. You can also access your Limit Orders from each asset in your Portfolio.

Can I cancel a Limit Order once it's placed?

Yes, you can cancel a Limit Order anytime before it is fully executed by accessing the details of your order from the Limit Order Dashboard, or from the asset page in your Portfolio.

What happens to the funds that are needed to execute my order?

Your funds will be transferred from your Main Wallet into a separate wallet called “Orders”, this way we can grant funds for your Limit Order execution at any time. In case of order cancellation those funds will return into your Main Wallet.

Can I place a Stop Loss Order using this feature?

No, this feature specifically supports Limit Orders. 

Conclusion

The addition of Limit Orders to the SwissBorg app is a significant step forward in providing our users with advanced trading tools. By leveraging the power of limit orders, you can enhance your trading precision, plan your investment strategy effectively, and enjoy greater predictability in your trading outcomes. We are excited to see how our community will utilise this feature to optimise their trading strategies and achieve their financial goals.

Start using Limit Orders on the SwissBorg app today and take control of your trading journey. Happy trading!