They’ve been heavily requested; we’ve heard you and we’re super excited to be introducing Limit Orders to Uphold.
What’s a Limit Order?
Simply put, a ‘Limit Order‘ allows you to buy or sell an asset at a specified price or better automatically. The trade is pre-programmed based on a price condition. If you wanted to buy Bitcoin at $40K, for example, your order would be executed as soon as BTC traded at or below $40K.
Similarly, if you wanted to sell BTC at $70K, your transaction would fill as soon as Bitcoin traded at $70K or above.
Limit orders are a time-efficient way of monitoring the market and making sure you don’t miss great buying or selling opportunities – and without having to spend countless hours monitoring price movements.
Sometimes limit orders never get filled: if your desired price isn’t hit, your order won’t execute because the condition hasn’t been achieved.
The great thing about limit orders is that they can make it easy for you to get the price you want by putting your desired trades on autopilot. So you can focus on other, more important things.
How are Limit Orders at Uphold different?
Uphold limit orders are unique – in fact, we believe they’re the best in the crypto space – because they’re capital efficient and versatile.
On Uphold, you can have up to 50 limit orders in place simultaneously using the same pool of capital. This ability to place multiple ‘bets’ at the same time gives you flexibility. Imagine you had $1000 in your account. And you had equal conviction in XRP, ADA and BTC and wanted to buy $1000 of each if a certain price were achieved.
Uphold allows you to place all three orders simultaneously using the same $1000 stake. The first order to achieve its price target would fill and take the $1000. Unless you put more money into your account, your other limit orders would simply fail.
The reason this works is that we lock your funds at the time of fill, rather than when the order is placed.
You can also set up buy and sell orders against a target price that is ‘outside’ the order; such as, sell 0.1 BTC and receive your funds in XRP when 1 BTC is equal to or higher than $70,000. On such a trade, we won’t know the exchange rate that’ll be in place between BTC and XRP when 1 BTC is equal to or higher to $70,000, so you’ll only know your proceeds after execution
You won’t need to worry about withdrawing your funds once a sell order has been executed. You can set things up so you can send funds directly into your USD/GBP/EUR bank account, making the trade that bit easier.
One final point. On Uphold you can set up limit orders between asset classes: so you can seamlessly switch between cryptos and equities, for example and have bets in different markets. Sell Tesla and buy Bitcoin when BTC reaches $50,000 is a real trade on Uphold.
Want to find out more? Here’s how to set up a limit order: https://bit.ly/2Tf7FQd