#OrderTypes101
If you want to enter the world of trading or have had a bad experience, you must understand the types of orders so that you know how to invest your money wisely and plan correctly. Here, I will explain to you simply the most common types:
1. Market Order
This is the simplest type! You will buy or sell at the current market price immediately. You won't control the price, but you will ensure that the transaction is executed quickly.
2. Limit Order
Here you specify the price you want.
For example, you can say:
"Buy when the price reaches $1" or "Sell when it reaches $1.5". The transaction will occur only if the price reaches the price you specified.
3. Stop Order
This is to protect yourself from loss or to enter a trade when the price moves in a certain direction.
For example:
"If the price drops below $0.8, sell" to minimize your losses.
4. Trailing Stop
This is the best option if you are in profit; the order will move with the price and stop the trade if the price reverses (meaning it drops),
but it preserves your profits.
5. One Cancels Other (OCO)
Here you place two orders together; if one is executed, the other is canceled.
For example:
"You place a sell order at $2 and a stop-loss order at $1.8"
If one of them occurs, the other will disappear.
The topic is easy and simple, and each order has its use. Choose what suits your strategy, and don't let emotions control you.
Be cautious and good luck to everyone
