There are different types of orders on the Luno Exchange:

How do they work? We’re glad you asked!


Tip:

Find out how the Luno Exchange works here. Looking to have the interface explained? No problem. Find answers there.


Limit orders

A limit order is an order placed on the Luno Exchange to buy or sell cryptocurrency - specifying both the amount and price at which you wish to trade.

  • A buy order (or bid) will only be executed at the limit price (or lower)

  • A sell order (or ask) will only be executed at the limit price (or higher)

Buy order

If you want to buy crypto on the exchange, first make sure you’ve selected the correct trading pair at the top (eg. BTC/EUR), and then follow these steps:

  1. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  2. Make sure that you have BUY selected, and that the Limit option is selected

  3. If you’re trading crypto/fiat pairs, enter the limit price (in our example, EUR) that you’d like to buy for - this is the maximum price that you’re willing to pay for the amount of crypto that you want to buy
    If you’re trading crypto/crypto pairs, the limit price won’t be your local currency, but rather, the limit on the crypto that you’re using to buy another type of cryptocurrency, ie. using Bitcoin to place a buy order for Ethereum

  4. In the next field, enter the amount of crypto that you’d like to buy for the limit price that you’ve entered

  5. And finally, select BUY


Note:

Once you’ve placed a buy order, you’re reserving your funds, which means that you cannot use those funds elsewhere - unless you cancel the order.


Sell order

If you want to sell crypto on the exchange, first make sure you’ve selected the correct trading pair at the top (eg. BTC/EUR), and then follow these steps:

  1. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  2. Make sure that you have SELL selected, and that the Limit option is selected

  3. If you’re trading crypto/fiat pairs, enter the limit price (in our example, EUR) that you’d like to sell for - this is the minimum price that you’re willing to accept for the amount of crypto that you want to sell. If you’re trading crypto/crypto pairs, the limit price will be the crypto that you’re using to sell, ie. using Bitcoin to place a sell order for Ethereum

  4. In the next field, enter the amount of crypto that you’d like to sell for the limit price that you’ve entered

  5. And finally, select SELL


Note:

Limit orders do not necessarily execute immediately. If you place a buy order at a price below all of the pending sell orders, you’re essentially waiting for the price of cryptocurrency to decrease and for a seller to sell cryptocurrency at the price of your order before your order is filled.


On the flip side, if you place a sell order above all of the pending buy order, you’re waiting for the price of cryptocurrency to increase and for a buyer to buy crypto at the price of your order before it is filled.

Viewing your buy or sell order

Once you’ve placed your buy or sell order, you’re able to view the order in the Open Orders section at the bottom left in the web, or by selecting My Orders on the mobile apps.


Cancelling your orders

If you’ve created a buy or sell order, you can cancel it anytime from the My orders screen by selecting the  icon on the web, or by selecting the order on mobile and then CANCEL ORDER.


Market orders

This is when you specify only the amount you wish to trade. The order executes immediately at the best available prices in the market. In other words, the market order matches with existing orders waiting in the order book.


Note:

A market order is always a taker order. If you place a buy order at the same price, or at a price above any pending sell orders, and it is filled immediately, your buy order is considered a taker order.


Here’s how to use market orders

  1. Log in to the Luno Exchange

  2. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  3. On the Place Order ticket, select Market

  4. Select either Buy or Sell, enter the Best available price and an amount

  5. Select (Buy/Sell) to place your order

  6. Confirm your order by selecting PLACE ORDER on the pop-up


Stop-limit orders

Stop-limit orders are similar to normal limit orders, but become active once the market has reached a predefined stop or trigger price that you set. Once the trigger condition has been met, a limit order will be posted in the order book at the specified limit price.

A stop-limit order has two price points - the stop price and the limit price:

  • A stop price refers to the condition of the specified target price for the trade,

  • and a limit price refers to the instruction for a trader to exit their position.

Once the stop price is reached, a limit order is automatically placed in the order book to buy or sell at the limit price or better.


Note:

Stop-limit orders will guarantee a price limit, but not a fill. In a fast-moving market, the stop price may trigger, but the market might move beyond the specified limit order price.


Let’s use an example: A Trader has 1 BTC purchased at €200, and wants to sell it at a higher price. They place a sell stop-limit order with a stop price of €205 and a limit price of €215. If a rapid decline takes the price below the stop price of €205, then a limit order is created at €215. Your order will now be active in the order book and will wait for the price to return to this level or above before being sold.


Tip:

The most significant benefit of a stop-limit order is that as a trader, you can protect your trades from volatility in the market. Stop-limit orders offer an extra layer of risk mitigation by allowing you to specify an exit price.


Here’s how to use stop-limit orders

  1. Log in to the Luno Exchange

  2. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  3. On the Place Order ticket, select Stop-limit

  4. Select either Buy or Sell, enter the Stop Price, the Limit Price and an amount

  5. Select (Buy/Sell) to place your order

  6. Confirm your order by selecting PLACE ORDER on the pop-up


What are maker and taker fees?

The Luno Exchange uses the Maker and Taker fee model - it’s a way to differentiate between trade orders that provide liquidity (called a maker order) and those that take away liquidity (called a taker order).

Maker orders

Your buy order would be considered a maker order. If it didn’t fill immediately against an order already on the order book - it adds liquidity. If it’s eventually filled, you’ll be charged a maker fee.

Taker orders

If you place a buy order at the same price, or at a price above any pending sell orders - and it’s filled immediately - your buy order would be considered a taker order. If it’s filled, you’ll be charged a taker fee.


Tip:

Find out what the maker and taker fees are based on your fee tier here.
Similarly, the maker/taker fees also apply to sell orders. Find out more about how fees are determined on the Luno Exchange.


What are Post-only orders, and how do they work?

Creating a post-only order ensures that you won't have to pay a taker fee. An order will only be added to the order book if it does not match with a pre-existing order. If it does, it will be cancelled.

For example: If you place a post-only ask at or below the best bid, your order will be cancelled instead of traded. If you place a post-only ask above the best bid, your order won’t trade but will go into the order book.