What are the risks and potential drawbacks of using market-on-close orders in the cryptocurrency market?

3 answers

• Bolat MNov 20, 2025 · 6 months ago
  Using market-on-close orders in the cryptocurrency market can be risky as it leaves the execution price uncertain. Since market-on-close orders are executed at the closing price, which can be highly volatile in the cryptocurrency market, there is a chance of significant price slippage. This means that the executed price may differ from the expected price, resulting in potential losses for the trader. It is important to carefully consider the market conditions and liquidity before using market-on-close orders in the cryptocurrency market to minimize the risks of price slippage.
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• Argoitz EstebanezSep 22, 2024 · 2 years ago
  Market-on-close orders in the cryptocurrency market can have potential drawbacks. One drawback is the lack of control over the execution price. Since these orders are executed at the closing price, traders have no control over the exact price at which their orders will be executed. This can be a disadvantage for traders who want to have more control over their entry or exit points. Additionally, market-on-close orders may not be suitable for traders who prefer to actively manage their positions throughout the trading day, as these orders are executed only at the market close.
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• Ric SNov 24, 2023 · 2 years ago
  Using market-on-close orders in the cryptocurrency market can be beneficial for traders who want to avoid the potential risks of price manipulation during the trading day. By executing orders at the closing price, traders can avoid the price fluctuations and volatility that can occur during the trading day. However, it is important to note that market-on-close orders may not be suitable for all trading strategies and market conditions. Traders should carefully consider their trading goals and risk tolerance before using market-on-close orders in the cryptocurrency market.
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