Research on the usage of orders on crypto-exchanges
Despite the fact that the demand for "classic" orders remained,
crypto enthusiasts showed a growing demand for other complex trading instruments such as the smart orders.
Relevancy Statement
The relevancy of the research is due to the fact that more and more traders both on stock exchanges and cryptocurrency exchanges complete their trading strategies with the help of the complex trading instruments. The percentage of use of simple and complex orders by traders is extremely interesting, as well as their attitude to the complexity of mastering the exchange functionality and the impact of order types on the profit.
Research data
The study overlooked 1,716 respondents from more than 100 countries. The most active users were from the USA, Russia, India and Indonesia. Most of the participants were users that trade crypto assets on crypto exchanges. Most of the respondents are engaged in trading every day, and one in two respondents spend more than an hour doing so.
Types of orders


Market Order, MKT — this order is executed at the Current Price (CP) that is valid at the market when the order is placed. As a result, the order is executed almost immediately.

Limit Order, LMT — using this order, you specify the Maximum Price at which you are ready to buy or the minimum price at which you are ready to sell the selected asset. The price for the Buy Limit Order must be lower than the market price and for the Sell One must be higher, otherwise the order will be executed at the market price.

Stop order, STP — the order becomes a market order as soon as the price (Stop Price) you set is reached. Most commonly, the Stop Order is used to close a position when a certain loss or profit of an asset is reached.

Stop Loss — this order automatically closes the position as soon as the set price is reached to stop the further loss on the asset.

Take Profit — this order is a command to close a position when the profit margin is reached. For example, if you place the Stop Order for $9, the asset you bought for $10 will be sold when the price drops to $9. If you set the Take Profit Order at $11, the asset will be sold when the price reaches this level and you will fix the profit.

Stop Limit Order, STP + LMT
— a stop order with the limit (restriction) function of an execution price. If the price has reached the Stop Price, the Stop Limit Order is placed. In this case, the Limit Price may either coincide or differ from the Stop Price. Most often, this order is used to avoid the sharp price movements of the asset.

Trailing Orders— a dynamic order that automatically moves with the market price. This order has no fixed price and allows placing orders with the moving price level. This allows you to make transactions at the most favorable rate.
How much time per day do you spend trading on the exchange on average?

How often do you use limit orders?
Most of the respondents are engaged in trading every day, and one in two respondents spend more than an hour doing so.
It should come as no surprise that traditional and most easy-to-use exchange instruments will be actively used for a very long time. Simple order types, that immediately end up in the order book after their making, are the most popular. The Limit Order has the unconditional leadership.
How often do you use market orders?
How often do you use additional parameters for placing the orders?
The Market Orders are on the second place by the popularity of their use.
The developers of exchangers try to make placing orders more convenient and flexible. They add the functionality to set additional parameters such as the time of order activation or cancellation, the options of their full, partial, instant execution belonging to a taker or maker, etc. More than 75% of respondents who have the opportunity to use additional parameters when placing orders will do so. This suggests that traders find these options really useful and convenient.
How often do you use stop orders?
How often do you use trailing stop orders?
The Stop Orders are often used to prevent large losses of an asset or to secure the profits. As the research shows, such methods are not just a theory. They are rather popular among many traders. Among the respondents who know and are able to use the Stop Orders, only 15% of them never use them.
The Trailing Orders are not available on all crypto exchanges. However, traders who have the knowledge to set them are actively using them for trading.
How often do you use complex orders or an option that allows you to set up a system of several orders?

How often do you use the option that allows you to automatically set up several orders at once according to the given parameters?
Systems for placing multiple orders (for example, "One-Cancels-the-Other") are also not available on all crypto exchanges. The feature allows you to set multiple orders in one go to quickly and conveniently create a certain logical circuitry for a certain asset position. It will allow you to make profits or minimize losses, and make only one reserve for the entire order system. Traders, who have access to this functionality, use it actively.
Every two of the three respondents use the order grid functionality that allows setting price intervals and the number of crypto assets on one interface. Therefore, multiple orders can be set up quickly and conveniently.
Would you like to add any other types of orders?
Do you believe the use of additional parameters for placing orders affects the profitability of your trade?
The research participants were asked to choose one or more options for the functionality they would like to see on the exchange they trade on. As we could see before, the traders have already used many of the order types for their trading strategies. So, the logical result was that opinions of the respondents were divided almost equally.
Every third respondent notes that the use of the complex orders and the additional functionality significantly affects the profitability of trading.
Was it easy for you to understand the use of different types of orders and complex functionality?
How important is a large selection of order types and the functionalities on the exchange for you?
Almost half of the respondents had difficulties in learning and understanding the functionality and methods. This suggests that the simplified cryptocurrency exchange operations will allow a greater flow of traders into the space.
Absolutely prominent result was that 75% (!) of the research participants consider the availability of a large choice of the functionality on the exchange as one of the most important criterias.
Conclusion
In the course of the research, we have found that different types of orders and functionalities that the exchanges are trying to implement, have a great response from traders. Moreover, various orders are actively used by them. However, the simple types of the orders, which immediately end up in the order book after, are still the most frequently used. The Limit Orders are on the frontline of leadership.


A significant part of traders surveyed notes that using the complex order types and the additional functionality greatly affects the profitability of trading. For most people, the availability of a wide range of trading functionalities on the cryptocurrency exchange is one of the most important criterias. In addition, in some cases, users prefer exchanges that have complex orders. Nevertheless, the research revealed that despite the attractiveness of the smart orders and their positive impact on profits, almost half of the respondents had difficulties in mastering these order types. It follows herefrom that the exchanges should be more attentive to the education and training issues and interactive demonstration of the functionality of smart orders for the greater user adoption.


Obviously, in order to retain traders, the exchanges should not only pay attention to technical support and convenience in working with classic orders, but also initiate the development of new tools, that correspond to the market challenges. The new KickEX crypto exchange demonstrates one of such examples of successful implementation of the complex orders. Here advanced traders have double Stop Orders and Trailing Orders at their hand. In addition, the developers have taken care of the smart cashback feature— up to 100% of trading commissions, and the affiliate program for additional partly passive income for users. The "conservative" traders should think about introducing new complex orders into their trading strategies, which, as the research has shown, have a chance to bring profits up the next level.


Launched in Q4 2019


KickRef is a referral program, allowing any member of Kick Ecosystem to create their own referral links to establish a network.

Start earning now!
Closed Beta testing


KickEX is an advanced-trading crypto exchange with the lowest trading fees and the most profitable referral program.

Join the test!
Launched in Q4 2019


KickAcademy is an institute that provides exclusive data about academic researches in crypto exchanges, and fintech.


Read more!