Active-Spreading is the most advanced type of spread orders provided by BitSpreader. Active-spreading is using the combination of limit and market orders to execute the spread transaction. One of the spread legs is executed using the limit order and second with market order.
BitSpreader places and actively updates limit orders on the market selected as the “Quoting” market. The second market in the spread is called “Hedging” market. As soon as the limit order is filled, BitSpreader executes the market (taker) order on the hedging market. This way of execution is faster and cheaper compared to Auto-Trigger orders
- Limit order price is calculated as the hedging market price plus spread limit price (or minus depending on the direction and which one is quoting which hedging).
- When the price on the hedging exchange moves, BitSpreader recalculates the price on the limit order and updates it