#订单类型解析 Common Sense: Eating market orders incurs higher fees than placing limit orders

Limit Order: Buy or sell at a specified price; if it is more favorable than the latest price on the order book, it will become a hanging order waiting for the price to reach and then execute, which may take a long time to fulfill. If it is less favorable than the latest price on the order book, it will take the most favorable opposing orders and execute immediately.

Mistakenly writing a limit order for selling a large pancake at ten thousand dollars or buying at two hundred thousand dollars is not a concern, as it will simply execute as a market order.

In addition to direct limit orders, there is also the best price hanging order, which can select counter prices or same-direction prices, suitable for short-term traders.

Basically, retail investors can use limit orders and best price orders to keep playing until they go bankrupt.

Hanging orders are suitable for contrarian operations and small capital operations, while eating orders are suitable for trend-following operations and large capital operations. Regardless of whether it is trend-following or contrarian, and regardless of capital size, one must learn to take profits and cut losses.