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Limit Orders? Market Orders? What the 🤬 is the difference? FAQ Friday

Updated: Sep 6, 2023

The BettorEdge social betting marketplace functions just a little different than a sportsbetting experience you are used to, but knowing the difference between a Market and Limit Order can help you create bets with the best value available! In order for a bet to go through on our marketplace, there needs to be money on both sides. So if you are creating an order for Team A to win at +100, someone needs to match the amount of money you put up for Team B to win at -100. We do not take any stake in the bet so every dollar fulfilled on our marketplace ends up back in the pocket of bettors (no vig!). To give bettors flexibility on their betting price preferences, we allow our community to create Market and Limit orders, terms you may be familiar with if you've used stock trading apps like RobinHood (which is why some of our users refer to us as "RobinHood for Sports Betting"). An important note, we refer to "price" as the probability or odds for your order (Team A to win at -120 is priced at -120).


What is a Market Order?

A Market Order is a type of order that executes at the current market price, meaning that the most recent fulfilled bet for a specific event would set that market price. Our system will identify the cheapest available open orders for your Market Order to fulfill.


Market Orders take priority over other types of orders in our platform, because the price will adjust if needed in order to fulfill your position faster. This is important to note because this means that you may see your order fulfill at a slightly different price than your initial order, but this will always be within your collar preference. If you create a Market Order for Kansas City to win at -122, your order may fulfill at any price that is better than your order (if an order pops up at -100 it will fulfill, at least partially) or may adjust to be slightly higher (based on your collar percentage).


What is a Limit Order?

A Limit Order is a Market Order with a 0% collar, the price you order is the highest price that will fulfill your order. Your limit price could result in a better price if one becomes available while your order is open, but it will never be higher than your selection.


If you create an order for Kansas City to win at -120, you could have your order fulfilled at -100 but will never have it fulfilled at -125. Your order will stay unfulfilled until a price that is better than or equal to your order price is found. (for more about Unfulfilled Orders, check out our FAQ Friday on the subject!)


What is the Collar?

The Collar Percent is the flexibility around a Market Order or how much higher of a price you will accept to fulfill a Market Order. You can set your default Collar on a Market Order on our platform to 0%, 1%, or 2%; at 1%, it means that a -122 order could accept any price better than -127 to fulfill your order. You can set your personal default in your User Preferences (Tap your profile image in the top right of the app, tap Edit Profile, go to the Preferences tab and find Collar Percent.)


You can select a 0% Collar as your default, which would make every Market Order you create function exactly like a Limit Order.


How do I know which order type to pick?

Your order type depends on your personal preference. If you are looking for a higher chance at fulfilling your bet, a Market Order is the best option as the price will adjust to match. A Market Order gives you the best chance to have your order fulfilled, but it may be at a slightly different price than you initially selected.


If you are looking for a specific price and don't want to budge on that, a Limit Order is your best choice. Limit Orders are the best way to ensure you get the best price you want, at the risk of your bet not fulfilling if no one is willing to match the other side.


Is a Head to Head order different from a Market or Limit Order?

No, a Head to Head Order (H2H, on the order form) is a Limit Order but instead of being available for anyone on the BettorEdge marketplace, it is only able to be fulfilled by the user that you select and challenge.


In a typical Limit Order, your bet can be fulfilled by any other member (or members) of the community. H2H challenges are meant for a 1 on 1 bet, just like watching the game with a friend rooting for the opposite team.

 

If you have more questions about Progressive Webapps or any other feature on BettorEdge, check out our Help Center or reach out to us on social media!

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