When you place an order on the exchange (for example, to buy or sell cryptocurrency), that order remains open until it is executed. That is, you tell the exchange that you want to buy or sell an asset at a certain price, but the trade will not occur until the price reaches the desired level.
Imagine that you ordered a product from an online store, but it hasn’t arrived yet because the product is not available at the price you chose. The same happens with an open order — it waits until the conditions for the trade become suitable.
How does having multiple open orders work?
When you place multiple orders, it’s like placing several orders in different stores at different price levels. If the price starts moving in your direction, one order may be executed, and you can immediately place a new one for the next buy or sell.
So you can control multiple trades at the same time, not missing out on profitable opportunities. When one order is fulfilled, you simply add a new one, and the process continues.
Why is this important for short selling?
Short selling is when you profit from a price decline. Open orders help you monitor the market and respond to changes in a timely manner. With multiple orders, you are always ready to execute a trade as soon as the price meets your conditions.
So don't forget to place multiple orders so you don't miss out on profitable moments and always stay in the game!
