Difference between Limited and Market orders
To understand how purchases and sales are carried out it is important to know that Bitso is a platform where purchasers and sellers trade Digital Currencies, such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Mexican pesos (MXN) through a “Book of Orders” where all the purchase bids and sale offers can be found. Bitso does not purchase or sell Bitcoins directly.
Quick Purchase/Sale (market order)
The quick purchase/sale is a purchase or sale at market price, in Exchange (“Book of Orders”) you can place a purchase or sale order at a specific price. When making a quick purchase/sale, the first orders that are in the “waiting queue” (from top to bottom) in the Book of Orders are taken, thus you do not have to wait for someone to accept your purchase/sale offer in order to obtain either your Mexican Pesos (MX) or your Bitcoins (BTC), since you take the best market price.
It is possible that during the quick purchase/sale you will take differently priced orders, as such may be found in the “Book of Orders”, in order to reach the requested amount.
Example: If you want to purchase 1 Bitcoin using the quick purchase/sale (https://bitso.com/trade/dash), pursuant to the Book of Orders shown below (Sale Offer) you would purchase the 0.42217219 BTC (Bitcoin) of the first seller (a Bitso user) and you would also purchase the 0.26706998 BTC of the second seller (another Bitso user); you would then purchase the remaining part that you would need to complete 1 BTC from the third seller (or rather the third sale offer, which would be the appropriate term), in this case:
0.42217219 + 0.26706998 = 0.68924217 (to complete 1 BTC you would still need 1 - 0.68924217 = 0.31075783)
The remaining 0.31075783 would be purchased from the 1.85502623 amount.
This is how the quick purchase/sale or Dash works.
Trading, limited order.
On the other hand, when making the purchase through the “Trading” page, you place your purchase/sale bid at a price that you determine yourself in the “Book of Orders” and the purchase or sale will only be made at that price; this process could be immediate or it may take some time until another user accepts the offer that you placed.
Example: Say you want to purchase 1 BTC (Bitcoin) at $11,915.00 MXN (Mexican Pesos). This is a hypothetical case, since pursuant to the table above, someone is selling it at $11,914.19 MXN, hence we could enter that amount, but for practical purposes we shall use a closed number.
Then, when you enter 1 BTC in Purchase Amount, $11,915.00 MXN in Price and you CLICK on Purchase, what happens is that you generate a Purchase Bid and such can take 2 courses:
1.- It will be “queued” in the Book of Orders (Purchase Bids) until someone in the same Book of Orders (in the section of Sale Offers) “matches” or “equals” your bid and it is finally Purchased.If there is no one, it will stay there indefinitely until you cancel it manually by clicking on the X in the table of Active Orders.
2.- It will be purchased “automatically” since in the Sale Offers THERE IS SOMEONE that is selling at that price; after this takes place 1 BTC will be displayed in the Balances table.