In last week’s post, we covered two of the most popular crypto exchanges available to us, BinanceSG and Gemini. Both fared well, but Gemini ultimately had the edge with lower fees, larger variety of supported coins and additional services.
Gemini Basic vs Active Trader
But for many who are not familiar with such trading platforms, the ActiveTrader interface might come across as… rather intimidating. Too many moving numbers and too many options to pick from.
Today, we will break down all the little bits and pieces that make up Gemini’s ActiveTrader platform!
Starting first from the left-most panel, this section allows us to set our orders.
At the top of this panel, we can select ‘BUY’ or ‘SELL’ depending on our needs. This panel also shows our available balances for the selected trading pair, in this case, BTC and USD.
Under the Order Panel, we will have several Order Types available to you.
Limit Order: The buy (sell) order will only trigger under at or under (over) your limit price. This is useful if you’re only willing to buy (sell) at a specific price.
Stop-Limit: Places the buy or sell order when the price crosses a fixed threshold. This is used especially in trading to identify patterns before entering or exiting a trade.
Maker-or-Cancel: In this order, if any part of your order can be filled immediately, the entire order is cancelled.
Immediate-or-Cancel: The order fills the quantity that can be filled immediately at the price set and cancels the remaining part of the order.
Fill-or-Kill: Similar to Immediate-or-Cancel, but if the entire order cannot be filled immediately, the whole order is cancelled.
Market: This takes whatever price is available on the market and fills your order as quickly as possible. This is great for fast buying or selling but may lead to orders being filled at prices that are less favourable.
These order types may seem confusing at first, I know I was haha, but most of the time, you’ll only need to use Limit and Market Orders, plus Stop-Limits if you intend to trade.
Once you’ve keyed in the prices and the quantity, the subtotal and fees incurred will be generated before you confirm your order.
Here we can see that the fee charged is indeed 0.35% as advertised!
At this point, you might have realised that we haven’t even addressed the biggest element in this whole interface yet, the chart!
Now, candlesticks are a whole subject by themselves, but essentially, each candle represents one period on the chart (in this case 1 minute), and shows us the movement of the price in that period. It shows the open price, close price, high and low of that period. This chart simplifies it further by allowing you to see this information in the box in the top left corner by simply hovering over the candlestick. More on candlesticks here!
The little bars at the bottom also shows us the volume traded in each period with bigger bars showing higher volume.
Now for the last element of this interface, we have the order book!
The Order Book lets us know the orders that have been set by other participants in the market.
In this screenshot on the right, we can see that the closest sell order is at $58,783.14 and the closest buy order is $58,778.22. The price that the buy order is set at is known as the Bid Price and the price that the sell order is set at is known as the Ask Price. The difference between these prices is known as the Spread (sometimes, Bid-Ask Spread). In this case, the Spread is $4.92. The spread represents the ‘loss’ that either party would have to incur to fill their orders immediately (i.e. by meeting the other party at their price). In general, when there is higher volume being traded, the Spread will be smaller.
This would also mean that setting a buy order at the Ask Price or a sell order at the Bid Price would instantly fill your order as well.
Besides the prices, you can also see the quantity and cumulative quantity. Quantity shows a single order size on the order book whereas cumulative quantity shows you the sum of all the orders at the price. As seen from the order book on the right, the cumulative quantity is much larger than the quantity as nice, round prices since those prices are more likely to be selected by market participants. On the other hand, at less common prices, the cumulative quantity usually equals the quantity, meaning that there is only 1 order at that price.
I hope this post has helped to clarify some of your doubts on how to use the ActiveTrader interface. Feel free to try it out first to work out any issues you have with the interface. If you have any issues, you can contact me as well and I’ll try my best to help you out.
If you’re new to crypto and wish to start by creating an account with Gemini, do consider using my referral link to sign up!
Till then, stay safe and happy investing!