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A Walkthrough Guide of the Zipmex Exchange

A Walkthrough Guide of the Zipmex Exchange

05 May 2020 zipmexteam Blog

As a newcomer to trading the terms Market Orders, Limit Orders, Bid and Ask are undoubtedly perplexing. In this article, we will help explain some of the terminology found on the Zipmex Exchange. Becoming proficient in this language and mastering trading techniques will help you grow your portfolio into profit.

To assist Zipmex also has a library of information at your fingertips such as Trading, General FAQs, Fiat Transfer and Account Management.

Market Pairs

Depending on the currency you plan to use for trading, the trading pairs section shows the available market pairs.

Zipmex supports both fiat-to-coin and coin-to-coin trading pairs. As at 08 April 2020, Zipmex offers the following trading pairs:

Fiat-to-coin pairings:

• BTC/USD

• ETH/USD

• LTC/USD

• XRP/USD

• BCH/USD

• BTC/SGD

• ETH/SGD

• LTC/SGD

• XRP/SGD

• BCH/SGD

• BTC/IDR

• ETH/IDR

• LTC/IDR

• XRP/IDR

• BCH/IDR

• BTC/AUD

• ETH/AUD

• LTC/AUD

• XRP/AUD

• BCH/AUD

Main Panel

Last Price

This is the market price or the current value of the digital assets that Zipmex offers. If you choose to purchase at the market price, you would get the digital assets that you wish to purchase at the current bid or ask order.

24 Hour Pct Cng

This is an abbreviation for “24-Hour Percentage Change” in price. If the price goes down, you will see a negative percentage and the opposite for the percentage. 

Bid

When you are trading in any form of digital assets on Zipmex, you are engaging in an auction.

The value of a digital assets fluctuates because the price changes depending on what people are willing to pay for it. When you put in a bid price for a digital assets, Zipmex will indicate the current market value of the asset. The price of each digital assets changes each day. Some of the factors that affect the price are:

  • What people are willing to buy and price; and essentially
  • Traders expectations and their outlook for the future of the asset

These factors could also be a useful tool to help understand how optimistic the market would be for a particular digital assets. In the event of the bid-pricing swelling over ask-pricing, indicates that the market is bullish on the asset.

Ask

The ask price is just like a bid price but for the sellers. Sellers set how much they are willing to sell their digital assets for. When you are placing an ask price for your digital assets, you are indicating to the buyers your minimum accepted price to sell that digital assets.

24 Hour Volume

The trade volume in the last 24 hours.

24 Hour Low

The lowest price of the asset in the last 24 hours.

24 Hour High

The highest price of the asset in the last 24 hours.

Order Book Section

In the order book, you will see a list of the ask prices from sellers for the selected digital assets. The upper section in the red is the asking PRICE, AMT (the amount of the asset which transaction has been proposed for) and VOL(value in fiat currency). On the contrary, the lower section in blue is referring to the Bid price from buyers.

This allows you to gauge whether there is a good indication on the health of the digital assets. If there are more sellers with asks than bids from buyers out there, it means the value of that asset is likely to fall in the near future.

Recent Trades

This panel gives you a breakdown on all the recent trades for the selected digital assets. Watching this will give you an insight into what others are doing on the exchange. In the Recent Trade column, you can see the exact time when each transaction took place, the settled price, and AMT (the total asset amount either purchased or sold).

New Order

Market Order

The New Order panel gives you an overview of your current asset holding based on the market pair you have selected. In the example above, the trader is hoping to use 75% of their balance ($4795.49 AUD) to buy BTC (0.35533466 BTC) as a Market Order.

A Market Order is different to a Limit Order. We will explain what a Limit Order is later in the article. A Market Order is an instruction to execute a trade either buy or sell immediately at the current market price. 

Advantage of Market Orders

This could be a useful risk management method to minimise a loss on a trade. A trader can stop a trade if the market reaches a level that is less favourable than the current market condition.

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’tisn’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 $13,553. The market order will be placed in the Open Orders section of your account (the bottom left-hand side of the exchange screen). If only 0.2 bitcoin sells at the current market price ($2,710.6), this amount will display in the Filled Order section. You can also see this amount in your combined Wallet balance. The outstanding order of 0.8 BTC ($10,842.4) will be left as an Open Order.

Limit Order

A limit order is an instruction to execute a trade at a state more favourable than the current market price. The instruction allows you to specify a minimum amount which you would be willing to sell. Or a maximum amount which you would be ready to buy a digital assets on the Zipmex Exchange.

Advantage of Limit Orders

A trader can set their ideal price to execute a trade. If the market reaches to 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 favourable price.

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. 

Account Section

The bottom left-hand side of the screen contains all your essential trade, deposit and withdrawal information. Navigate these tabs to locate the status of each trade, deposit or withdrawal.

To begin trading with Zipmex sign up for an account today. After which, you can transfer fiat directly into your Zipmex account. One thing to note, only trade what you can afford to lose because the digital assets market is highly volatile. Prices can vary within ten minutes. We, therefore, encourage you to do your due diligence and research before investing.