What is a minimum order size?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 3 min
In short
A minimum order size is the smallest quantity or amount a single order may be. Anything below it is rejected. The rule exists to stop the system filling up with dust-sized orders, and the thresholds differ by asset and operator, so check their guidance.
Key points
- The smallest size or amount a single order may be
- Orders below it are rejected
- Exists to keep processing efficient
- Thresholds differ by asset and operator
Definition
The smallest quantity or notional amount an exchange will accept in a single order for a given asset; anything under it is rejected by the system.
Minimums exist for efficiency. A book crowded with dust-sized orders is harder to read and wastes processing capacity. Setting a floor means only orders of meaningful size are accepted.
The floor may be expressed as a quantity or as a notional amount. When it is a quantity, the money required rises as the price rises. An order that will not go through for a small purchase is usually hitting this rule.
Withdrawals often carry their own separate minimum. Trying to clear out a small remaining balance and finding it below the withdrawal minimum is a common snag. Checking this before moving venues or closing an account saves rework.
Watch out for
- · A small balance can get stranded below the withdrawal minimum
- · As prices rise, the same quantity requires more money
- · Minimums vary by asset and operator — check official guidance