Target orders are a way to buy or sell bitcoin at a specific target price. It’s a way to customize your trading activity by executing trades only if your desired price is reached.

Target orders for bitcoin are simple.

You set a target bitcoin price, enter the amount you wish to trade, and then place your order. If the bitcoin price reaches your target, your order executes.

When placing a target order, you can choose to set it as either a buy or sell order, with a target price above or below the current bitcoin price. You can think of target orders as four separate options:

• Buy if the price rises to target
• Sell if the price rises to target
• Buy if the price falls to target
• Sell if the price falls to target

Target orders offer a way to enhance the way you trade bitcoin by giving you more flexibility and autonomy.

When to use target orders

Target orders can be useful for customizing your bitcoin trading, depending on what you’re seeking to accomplish:

• Buy the dip: If you think bitcoin’s price may drop in the near future, you can set a buy order at a target price lower than the current price. If Bitcoin’s price dips to your target, your order will execute, even if you’re not watching the market.
• Buy the rally: If bitcoin’s price surpasses a certain threshold, such as the all-time high, it might break out and continue to rise. By setting a target buy order at the all-time high price, you could catch potential momentum of the price move.
• Sell the (local) peak: If you need to cash-out some of your bitcoin, but are comfortable waiting for a better price, you can set your target sale above the current price. If bitcoin rises to that price, your sell order will execute.
• Set the floor: If there’s a price at which you can’t tolerate further declines, such as needing to cash-out to cover an expense on a certain date, you can set a target sale below the current price. If bitcoin’s price drops to that price, your order will sell to prevent any further declines.

How to place a target order in the Strike app

To place a target order in the Strike app, you first need to add cash or bitcoin to your account, depending if you’re looking to buy or sell.

To place a target order, visit your Bitcoin screen and follow these steps:

1. Tap “Buy” (or “Sell”)
2. Tap Order type and select “Target order”
3. Set your Target bitcoin price
4. Select the order’s expiration date or keep it “Open until canceled,” then tap “Next”
5. Enter the amount to trade or tap Currency Switch to denominate the trade in bitcoin (if applicable)
6. Review your order details and tap “Confirm”

That’s it. If bitcoin’s price reaches your target, your order will be triggered.

When you place a target buy order, the required cash will be deducted from your balance and held in reserve until the order executes (or expires). Similarly, a target sell order will hold your bitcoin in reserve. To check your reserved funds tap on your balance breakdown button, right below your cash or bitcoin balance.

You can also review all your open orders on your bitcoin screen, which includes both recurring and target orders. If you wish to cancel a target order, simply select the order, and tap “Remove target order”. When a target order is removed, the reserved funds will be released back to your balance. Please note, orders only execute in full, not partially.

Target orders in the Strike app are being progressively rolled out over the coming days. Update your Strike app to access target orders when available.

Limitations of target orders

Although target orders offer a great way to customize your trades, there can be some limitations in how they execute.

1. Brief target price: If bitcoin only briefly reaches your target price before bouncing back in the opposite direction, there may not be sufficient time to execute your order.
2. Multiple similar orders: If a lot of other people place orders at the same target price, your order might not be the first in line to execute. After executing the other orders, the price of bitcoin may no longer be at/within your target and therefore unable to execute.
3. Large order placement: If you place a significantly large order, there may not be enough volume at your target price to execute your order, especially if bitcoin’s price only briefly reaches your target.
4. Missed target: During periods of volatility, the price of bitcoin can move suddenly by large amounts, which can be faster than the time needed to execute all open orders at a target price. As a result, if you set a target buy above the current price or a target sale below the current price, the order may not be able to execute exactly at your target price, resulting in a worse price than expected.
5. Funding issues: If you place a target order using cash from a pending bank deposit that fails or reverses, then the target order may be automatically canceled prematurely.
6. Cancellation delay: When canceling a target order, the cancellation may take a few seconds to complete, in which time your target price may be reached and your order executes.

To avoid potential issues, you can take certain actions:

• Instead of one big target order, place multiple smaller orders
• Stagger your orders to execute at different target prices
• Set a target price that isn’t a round number, which may already be in-place by other people whose orders may execute ahead of yours
• Place your target orders using funds that are completely settled in your account

Target orders are a great way to customize your trades, but there’s no guarantee that your target price will be reached in a timeframe that suits you. To mitigate that risk, consider diversifying your trading by using single trades or recurring purchases. Recurring purchases execute at set time intervals, such as daily, weekly or monthly, regardless of the price, which can help mitigate price volatility. At Strike, recurring purchases have no fees after the first week.