Proptee supports limit orders to make sure that everybody gets the price they want.
What is a limit order?
A limit order is an order to buy or sell a token with a restriction on the maximum price to be paid or the minimum price to be received (the “limit price”). If the order is filled, it will only be at the specified limit price or better. However, there's no assurance of execution with a limit order, therefore setting a great limit price is crucial. In the Proptee app, you will see a price suggestion on the order screen to make pricing easier.
A limit order may be used to buy at a price lower than—or sell at a price higher than—the current quote.
We follow MiFID's best execution regulation to make sure we take all sufficient steps to obtain the best possible result for our customers on a consistent basis, taking into account price, cost, speed, the likelihood of execution and settlement, size, nature or any other execution consideration when executing transactions on your behalf. We don't inflate the spread or do any front running like many of the other exchanges do.
The smallest ask and the highest bid will be matched first in the Proptee orderbook.
E.g. If a sell order is submitted with a limit price of €1 then a buy order that is bigger or equal to €1 will be matched with the sell order. In this case, the execution price is determined in favour of the seller, so the seller receives exactly the amount that the buyer paid.
Why do we have limit orders?
We have limit orders for two simple reasons.
As liquidity is lower than on the stock market, we want to protect investors to be accidentally matched with high ask or low bid orders, as it can ruin their investment.
Limit orders are able to create a free market, moving the price of a fraction up as well as down.
Canceling limit orders
You can cancel your pending limit orders at any time in the Portfolio section of the app. Simply click the pending order you want to cancel and select 'Cancel Order' from the pop-up menu.
Please keep in mind that only pending orders can be cancelled. Executed orders cannot be cancelled, as they already have been filled.