What is Chain Order?

A chain order is a frequently used order type in traditional financial markets. A chain order is defined as the transmission of another order to the market in the event that an order is triggered and executed in the markets. Chain order, which is used especially in stocks in traditional financial markets, is defined as all of the stock buy or sell orders entered in the system to be transmitted to the stock market and linked to the unfulfilled main order and defined to be transmitted to the market again, subject to the realization of the entire main order.
Chain Order Example
Let's assume that the Bitcoin price is momentarily at the level of 20,500 USD. You want to write a buy order in case the price instantly sees the level of 20.000 USD, but since we do not know exactly when the order will take place, you will have to re-enter and write an order for the sell transaction after the purchase is made. However, as soon as a buy order is written with a chain order, it can be written in a sell order depending on the main buy order.
For example, let's say that if Bitcoin drops to the level of 20,000 USD and the entire 1 BTC buy order is fulfilled, we write a sell order at the level of 20,400 depending on the main order. As a result of the price falling to the level of 20,000 USD and the execution of the order, the sale of 1 BTC to the level of 20,400 USD can be written. Thus, a sell order is automatically written immediately after the purchase.
How is Chain Order Transmission Performed?
In order for the chain order to be transmitted, a main order must first be determined. After the main order is determined, you can connect another order to the main order on the entry screen of the order. In order for chain orders to be transmitted to the market, the entire main order must be executed. After the partially executed main order, the chain is not transmitted to the market.
In case of realization of the main order, more than one order can be linked as a chain. For example, in case the Bitcoin price drops to 20,000 USD and the main order is realized, you can write a sell order to 20,400 USD or a rebuy to 19,500 USD level.
Conditions can be added to secondary orders in chain orders. For example, after a 20,000 USD buy order, you can write a chain of 20,400 USD sell order, and after the execution of this order, you can write a buy order at 20,100 USD again. Thus, you can create chain orders by linking 3 separate orders.
In chain orders, after each triggering order is executed, the account balance must be sufficient for that order so that the next order can be transmitted to the market. #ContentStar# #GateioTurns10# #BountyCreator#