Guide for traders

As we have seen, there are many kinds of restrictions and limitations and as the market grows, new ones will emerge. Before completing this subject, we should mention another two kinds of restrictions and limitations: the first one concerns the time length that we can maintain an open buying or selling position and the second one concerns the rounding of the quantity we want to buy or sell.

In More detail:

Time limitations for an open position: Recently, Bittrex has introduced a new restriction to minimize the adverse consequences of the sharp increase in users and transactions. In order to release some of its resources, Bittrex does not allow users to maintain an open position for more than a month. Thus, if the position we have opened has not been closed within a month, our order is cancelled and our coins are automatically returned.

Rounding: This is an "inconvenient" restriction, since it works as follows: Let’s suppose we are at Binance and we buy 35 Komodo (KMD) at an x value with the aim of selling them later at a y > x value. Since trading fees at Binance are 0.10%, we will eventually end up with 34,965 KMD. However, when we place the sell order we will find out that we can only sell 34.96 KMD, since Binance does not accept a sell order with more than two decimals. Our account’s balance will eventually remain with 0.005 KMD. So, it would be advisable, when we want to place a sell order, to calculate first the cost we have from any small unused quantities of coins (dust). Binance as mentioned, but also are two of the platforms that apply this limitation.

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