Market Orders
Market orders allow you to buy or sell crypto instantly at the best available price. To protect against extreme price fluctuations:
- Buy orders: Adjusted with a 1% buffer (won't execute if price moves >1% above order price)
- Sell orders: Adjusted with a 5% buffer (won't execute if price moves >5% below order price)
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Unfilled market orders cancel automatically after 2 minutes.
Limit Orders
A limit order specifies the maximum/minimum price you're willing to pay/receive:
USD-placed orders:
- Buy: Never pay more than your set amount (rounded up to nearest cent)
- Sell: Never receive less than your set amount (rounded down to nearest cent)
Fractional crypto orders:
- Buy: Receive exact crypto amount at your set limit price
- Sell: Sell exact crypto amount at your set limit price
Note: Execution isn't guaranteed - depends on market reaching your price.
Stop Orders
Stop orders trigger market orders when reaching a set price:
Buy stop order:
- Set above current price
- Triggers if price rises to stop price (with 1% buy buffer)
Sell stop order:
- Set below current price
- Triggers if price falls to stop price (with 5% sell buffer)
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Stop Limit Orders
Combine stop and limit order features:
Buy stop limit:
- Triggers at stop price
- Executes only at limit price or better
Sell stop limit:
- Triggers at stop price
- Executes only at limit price or better
Example: XYZ at $5 → Set stop $8, limit $8.05 → Only buys if available ≤$8.05 after reaching $8
Order Specifications
- Minimums: $0.01-$0.03 depending on routing
- Fractional trading: Buy/sell partial coins
- Position limits: $20M-$50M cost basis per crypto
- Trading hours: 24/7 (except maintenance)
Trading Features
- Instant proceeds: Reinvest immediately (5-day ACH withdrawal wait)
- Cost basis: FIFO method ($0 basis for external transfers)
- Spread: Difference between buy/sell prices reflects liquidity
FAQ
Why do buy/sell prices differ?
The spread reflects market liquidity - tighter for popular coins like Bitcoin, wider for less-traded assets.
Are crypto trades subject to PDT rules?
No, crypto isn't regulated like securities so pattern day trading rules don't apply.
How quickly can I access crypto sale proceeds?
Immediately for reinvestment, but 5 business days for bank withdrawals.
What's the minimum crypto order size?
$0.01 for market maker routing, $0.03 for smart exchange routing.
How are external crypto transfers taxed?
Robinhood estimates gains using $0 cost basis and transfer receipt date.
Can I use crypto as margin collateral?
No, crypto is non-marginable and requires 100% cash backing.