When you want to operate in buying / selling, you can see different offers and orders in the market, this can be a bit confusing if it is not clear what the difference is between them, so we will explain it below:
An Offer is when a maker (Maker) postulates a proposal to buy or sell digital assets (cryptocurrencies) with specific parameters (digital asset to be traded, quantity, price, form of payment, etc.), this offer will be divided into several offers depending on the selected payment methods, that is, if a single payment method is selected, a single offer will be created, but if 3 possible payment methods are selected, an offer will be created for each of them, although each of the offers have the total of the assets postulated for the commercialization when being taken, the quantity of the asset to be traded must be specified and the platform automatically subtracts it, leaving the balance in the other offers.
Offers go through different statuses:
- Pending / Active: when the offer (s) are created and they go on to apply in the platform market or when it is taken and waits for the approval of the maker to start the marketing process, if the offer it is not taken for total assets, it will continue to appear in this list with the remaining balance to be commercialized.
- Completed / canceled: The offer will pass to this status if it is canceled by the maker or if it was taken in its entirety and the negotiation of the entirety of the offer was successfully completed.
An Order is when an offer is taken either partially or totally. In order for the offer to become an order, the maker must have accepted the negotiation, but since the taker has made an offer, it has become an order.
An offer can be converted into many orders depending on the payment methods or the amounts of assets of each order.
Orders go through 3 phases:
- Pending: the bidder took the offer and waits for the maker's approval to start the negotiation process.
- Active: the order is in the process of negotiation.
- Completed: The negotiation process was successfully completed.
Here is an example:
Peter makes an offer of 0.1 to 1 BTC and wants the payment to be made by bank transfer or by other means of payment, in the list an offer will appear for 0.1 to 1 BTC by bank transfer and another similar by the other payment method.
John takes the bank transfer offer and wants to buy only 0.5 BTC, if Peter approves it, it becomes an order with those specifications and 2 offers are published, one for 0.5 to 1 BTC by bank transfer and the other for 0, 5 to 1 BTC by the other means of payment chosen.
This will continue until 100% of the offer is taken or the maker cancels it.