Trading Clearing & Settlement rules – matching algorithm, order handling, order type, etc.
Zipmex uses an order matching system (OMS) to match buy orders, or bids, with sell orders, or asks, to execute trades. Zipmex does this by using computer algorithms. Matching orders happen when compatible buy orders and sell orders for the same asset happen at the same time. Generally, a buy order and a sell order are compatible if the maximum price of the buy order matches or exceeds the minimum price of the sell order. From there, the order-matching systems of Zipmex uses a first-in-first-out (FIFO) system to prioritize orders for matching.
Zipmex is a 24/7 exchange because digital assets market is a 24/7 market. It is unethical to not allow users access to the market at all times. The exchange will be scheduling maintenance times on a case by case basis in order to upgrade the exchange platform, evaluate any potential loopholes in the systems and to increase security of the exchange platform as a whole.
Key Benefits to End Users
- True 24/7 Trading Venue – Resilient, fault-tolerant architecture supports continuous, round-the-clock trading
- Real-Time Trade Settlement – Trade settlement may be implemented to occur near-instantaneously across instruments
- Multi-Currency Trading – Support for rapid, continuous addition of digital currencies, bespoke assets, and national currencies
The platform supports a variety of trading interfaces:
Trading UI – High-performance, browser-based trading GUI providing single point of entry for key market interactions: – Order management
- Trade Reporting
- Quote Management
- Real-Time Balance Update
- Market Data
What is a Market Order?
A market order is when you want to place an order to buy or sell an asset at a market price. Placing a market order means you accept the risk of buying or selling at the best price that is on the order book.
Advantage of Market Orders
Using a market order means you can trade immediately without waiting for the exact price like a Limit Order. You will be able to trade fast using the best rate offered at the given time.
The disadvantage of Market Orders
One of the disadvantages of a Market Order is when Slippage occurs. As Investopedia defines,
“Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used. It can also occur when a large order is executed but there isn’t enough volume at the chosen price to maintain the current bid/ask spread”.
For instance, if you buy 1 bitcoin at the current market price of 130,553 THB. If the order book only has 0.2 bitcoin at the current market price of 130,553 THB this amount will be filled and displayed in the Filled Order section. As this is a market order, the remaining 0.8 bitcoin will be filled fully but at a different price level as the first order does not have enough liquidity for you to fill the full 1 bitcoin. So in actual fact, you didn’t buy 1 bitcoin at 130,553 THB , instead the average price you buy will be higher or lower. The same logic applies to sell orders as well.
What is a Limit Order?
A limit order when you place an order to buy or sell assets at a specific price. It is usually an instruction to execute a trade at a state more favorable than the current market price. The instruction allows you to specify a minimum amount that you would be willing to sell. Or a maximum amount which you would be ready to buy digital assets on an exchange.
For example, if the Bitcoin price is now 190,000 THB, but you want to buy when the price goes down to 180,000 THB. Instead of sitting in front of your screen all day waiting for it to happen, you can place a limit order to buy BTC. When the price hits 180,000 THB, your order will be executed right away.
Advantage of Limit Orders
A trader can set their ideal price to execute a trade while saving their time of monitoring the market price. If the market reaches that level, a trade will be carried out without the need to monitor the market continually. A positive slippage could occur to a Limit Order. If the current market price falls below the set amount, your position could be opened at a favorable price .Using Limit Order could be a useful risk management method to minimize a loss on a trade. A trader can stop a trade if the market reaches a level that is less favorable than the current market condition.
The disadvantage of Limit Orders
A limit order may never be guaranteed to be filled because the market price did not reach that amount you have specified. You might have an open order for weeks with no match because the market price never reaches your desired price.