OK so we have 3 important things to understand in order to bring this all together.
- How to specify the limited asset
- Difference between the trigger field and the amount field
- Which asset to set as the limited asset in an order
How to specify the limited asset
When trading on Swyftx you have the flexibility to set the amount for your trades in either the crypto asset you're trading (e.g. Bitcoin) or the base asset you're trading with (e.g. Australian Dollars).
When you enter an amount into one of the two amount fields show on the Buy/Sell screens, we'll highlight the tag in that field to indicate that you've elected this amount to act as what we call the "limited asset".
In this screenshot we're buying bitcoin and have typed $200 into the AUD field, which has set AUD as the "limited asset" for this order.
So why do we have a limited asset? In every order Swyftx can only ever guarantee either:
- How much to spend (e.g limited by AUD); or
- How much to receive (e.g. limited by BTC)
When you type in an amount of AUD, we'll show an estimate of how much that is worth in BTC and vice versa.
Difference between the trigger field and the amount field
When you select either a limit order or a stop order you'll see a new field appear. The trigger field is where you specify what price you'd like us to execute your order at. In contrast, the amount fields (explained ☝) are where you specify the amount to either buy or sell at the trigger price.
In this screenshot we are going to buy $200 (amount) worth of Bitcoin if the price drops to $12000 (trigger) per Bitcoin.
Which asset to set as the limited asset in an order
Ok, so by now you should have a pretty good idea of what the limited asset is and how to use the trigger and amount fields (If you don't, go through the above examples again and test it out in the demo mode). Lets pull that all together into placing a trade.
In order to avoid the "Insufficient Balance" error when executing your trades we HIGHLY recommend the following rule of thumb when:
- SELLING - Set your limited asset as the asset you're selling (e.g. BTC)
- BUYING - Set your limited asset as the asset you're spending (e.g. AUD)
In the below LIMIT BUY confirmation, the ~ symbol denotes the estimated amount. So what we can take from this order confirmation dialogue is that we will spend exactly $200 AUD in exchange for approximately 0.01656666 Bitcoin.
In the below LIMIT SELL confirmation, we will sell exactly 0.01656666 BTC (the limited asset) in exchange for approximately $214.074838 AUD.
P.S Swyftx will show you a warning error if you don't do this correctly. If you see that warning message, then double check that rule of thumb above ☝.
Why do you give the option to chose the limited asset then if this is the way it should be done?
In some cases you may want to do the opposite, aka, specify the exact amount of BTC that you'd like to Buy. Lets say you wanted to buy exactly 1 Bitcoin (because who doesn't want to own exactly 1 perfectly round Bitcoin right?) and Bitcoin is currently $12500, then you would need to make sure you have at least $12500 in your account balance, if not a little more, for the order to execute. Inversly, you might be running short on cash and want to just sell off $1000 of your Bitcoin, rather than having to calculate that yourself, you can just specify to sell $1000, and then make sure you have the amount of Bitcoin in your account that is estimated (approx 0.07738461 for this example).
Finally, there is no extra fee charged for setting these orders or cancelling them as the only fee charged is the 0.6% commission fee charged when the order is triggered.
If you would like any further information on the different types of orders we currently offer or liquidity, please don't hesitate to get in contact with us via live-chat.