Order Types in Trading
There are several types of orders for buying or selling assets.
Market orders are the most common, executing at the current market price, while limit orders allow specifying a desired price.
Stop orders allow limiting losses or securing profits.
Main types of orders:
Market Order: Executes immediately at the best available price in the market.
Limit Order: Executes only if the price reaches or exceeds (in buying) or is below (in selling) the specified price.
Stop Order: Activates upon reaching a certain price, which can be to limit losses (stop loss) or secure profits (take profit).
Stop-Limit Order: Combines the stop order and the limit order, activating upon reaching a stop price and executing at the limit price or better.
Stop-Loss Orders:
Used to limit losses, setting a selling price in case the asset's price drops to that level.
Take-Profit Orders:
Used to secure profits, setting a selling price in case the asset's price rises to that level.
