What is the “Conditional Transaction” feature in my iTrustCapital account?
iTrustCapital’s Conditional Transaction feature allows clients to set parameters to automatically execute transactions when an asset reaches a specified price rather than manually entering a transaction as a market order - allowing clients to execute transactions when they are away from their devices. While it is a convenient option we offer on our platform, please keep in mind that conditional transactions execute as market orders, not limit orders. Conditional Transactions do not guarantee an execution price.
Conditional Transactions execute as market orders when a specified asset reaches the conditional price set by the client. iTrustCapital’s proprietary software monitors the asset price, and when the conditional price is detected, notifies the liquidity provider to execute a market order. Our liquidity providers execute and fulfill the transaction(s) at the best possible price, as market conditions allow in real-time.
For more detail, please view the video below.
How are Conditional Transactions Utilized When Transacting?
Conditional Transactions allow clients to set price conditions above or below current market prices under which a market order will be executed to enter/exit positions automatically if an asset reaches a desired market value.
Are Conditional Transactions Limit Orders?
Please keep in mind that Conditional Transactions are not Limit Orders. Limit orders guarantee an execution price, whereas our Conditional Transactions execute a market order when your trigger price is satisfied by our liquidity providers. As a reminder, conditional Transactions do not guarantee an execution price.
Being IRA providers, neither we nor our Custodian, Fortress Trust, are exchanges. We source liquidity from outside providers via market orders. Market orders lead to varied prices based on demand and volatility at the time of execution.
Every liquidity provider will have a different bid-ask spread. We are currently exploring even further liquidity options to maintain competitive pricing for clients, in addition to new order types, such as Limit Orders.
Example of a Conditional Transaction Compared to Limit Orders:
Buy - Let’s imagine the current price of Bitcoin is $42,000 and you submit a conditional transaction to purchase up to $1,000 of Bitcoin at a conditional price of $40,000. If Bitcoin drops to $40,000 or lower, your conditional transaction will trigger the submission of a market order to purchase up to $1,000 of Bitcoin depending on your available USD balance. Please note that market orders are subject to market volatility and your conditional price is a trigger for a market order and is not a guaranteed execution price. As a result, the execution price will most likely not be $40,000, but rather something like $40,100.
Sell - Let’s imagine the current price of Bitcoin is $40,000 and you submit a conditional transaction to sell up to 1 Bitcoin at a conditional price of $42,000. If Bitcoin rises to $42,000 or higher, your conditional transaction will trigger the submission of a market order to sell up to 1 Bitcoin depending on your available BTC balance. Please note that market orders are subject to market volatility and your conditional price is a trigger for a market order and is not a guaranteed execution price. As a result, the execution price will most likely not be $42,000, but rather something like $41,900.
How long will it take for my Conditional Transaction to Execute and Settle?
Conditional Transactions execute when the asset reaches the conditional price or higher/lower, depending on parameters chosen by the client, as outlined later in this FAQ. Once successfully executed, the market order will be settled in seconds and the Conditional Transaction will be fulfilled. The execution price/amount may vary with market volatility. Clients are not permitted to enter the current market price of an asset for the conditional price as this would result in immediate execution.
If an attempt to fulfill a Conditional Transaction fails, iTrustCapital will continue to monitor market conditions and a market order will be resubmitted if the conditional price conditions continue to be met. This process will repeat until a market order is successfully executed to fulfill the Conditional Transaction or the transaction is canceled by the client - whichever comes first.
There will be no changes to a client’s portfolio holdings until the Conditional Transaction is successfully executed.
Will my Conditional Transaction be impacted by whether my "Conditional Price” is above or below the current market price?
Yes. When setting up a Conditional Transaction, clients can enter target values above or below the current prevailing market price for an asset, known as the "Conditional Price”.
- If a client enters a Conditional Price lower than the prevailing market price, a market order will be executed when the asset price dips down to the conditional price or lower
- If a client enters a conditional price higher than the prevailing market price, a market order will be executed when the asset price reaches the conditional price or higher
Once the conditional price is reached, the order will immediately execute as a market order, such that the executed price may be higher or lower than the conditional price. Reaching the conditional price triggers the execution of the transaction as a market order.
Why does it say, "Purchase Up To Amount (USD)" and "Sell Up To Amount (Tokens)" on the Conditional Transaction preview screen?
The Conditional Transaction feature allows clients to input up to how much they would like to buy (denominated in USD) or sell (denominated in tokens). This allows iTrustCapital to tell the liquidity provider to execute a market order on the client’s behalf utilizing available funds (USD or tokens) from their remaining balance if they do not have sufficient funds to cover the amounts they specified in the "Conditional Price" and "Up To Amounts".
Will I be able to cancel a "Conditional Transaction" after I enter it?
Yes. Clients can cancel their Conditional Transactions prior to execution from the history section by selecting the trash icon on desktop or swiping left on an open transaction in the mobile app and selecting the trash icon.
Please note that clients cannot alter an open transaction. If changes are needed, clients will need to cancel the current transaction and enter a new one.
Conditional Transactions will remain open until a market order is successfully executed to fulfill the transaction or the transaction is canceled by the client - whichever comes first.
For more detail, please review the video below.
This is provided for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrust Capital, Inc. is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrust Capital, Inc. is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are speculative investments with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody provider. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrust Capital, Inc. makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrust Capital, Inc. does not provide legal, investment, or tax advice. Consult a qualified legal, investment, or tax professional.
iTrust Capital, Inc. makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrust Capital, Inc. disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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Articles in this section
- Conditional Transactions FAQ
- Where do the prices come from?
- Can I place a limit order or a stop loss? What are Conditional Transactions?
- Am I able to self-trade my digital assets?
- Is there a minimum or maximum per transaction?
- How fast are your transactions? How long will it take to execute and settle?
- When I submit a transaction, the system says that I have an insufficient balance.
- Why is my transaction not going through?