<p>Every exchanges have that in place.<br>
This is to prevent abuse. If they don't reserve the funds when people place orders, anyone could have placed infinite amount of orders, especially stop-loss orders.<br>
Perhaps in Kraken the "balance" doesn't reflect that, but you can try to place double orders and see for yourself. </p>

CC BY-SA 3.0
2017-12-03T01:15:53.593Z
2017-12-03T01:15:53.593Z
Chak
<p>I had some money on balance in my <code>GDAX</code> account.
I placed a limit order on a price below market price for the whole amount I had, and ... my balance now shows <code>0.00</code></p>

<p>The limit order I placed is still <code>open</code>, but my balance decreased. This is different to for example <code>Kraken</code>, where your balance remains intact until order is <code>executed</code>. </p>

<p>Is that how <code>GDAX</code> work, and as soon as I cancel my order, my balance will be restored to original value? Is this typically normal for exchanges? (I only used Kraken until now)</p>

<kraken><gdax>
GDAX: Balance and placing a limit order
dark_ruby
# GDAX: Balance and placing a limit order

(Asked by: username_0 on 2017-12-01)

I had some money on balance in my `GDAX` account.
I placed a limit order on a price below market price for the whole amount I had, and ... my balance now shows `0.00`

The limit order I placed is still `open`, but my balance decreased. This is different to for example `Kraken`, where your balance remains intact until order is `executed`.

Is that how `GDAX` work, and as soon as I cancel my order, my balance will be restored to original value? Is this typically normal for exchanges? (I only used Kraken until now)

**Tags:** kraken, gdax


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## 1 answers

### Answer by username_1 on 2017-12-03. Score: 0 | Accepted answer

Every exchanges have that in place.  
This is to prevent abuse. If they don't reserve the funds when people place orders, anyone could have placed infinite amount of orders, especially stop-loss orders.  
Perhaps in Kraken the "balance" doesn't reflect that, but you can try to place double orders and see for yourself.


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