Explanation of Types of Trading Orders*
*For Beginners/ Explanation of Types of Trading Orders*
1. Limit Order:
* Imagine: You set the price at which you want to buy or sell a specific currency.
* How does it work? You tell the platform: "I want to buy this currency only if its price reaches this limit (or less)" or "I want to sell this currency only if its price reaches this limit (or more)".
* When do you use it? When you have a clear idea of the price you find suitable for buying or selling, and you don’t mind waiting until the price reaches that limit.
2. Market Order:
* Imagine: You want to buy or sell a specific currency immediately at the best available price in the market right now.
* How does it work? You tell the platform: "Buy me this amount of currency now" or "Sell me this amount of currency now". Your order will be executed at the nearest price available in the market.
* When do you use it? When your priority is the quick execution of the trade, and you don't focus much on getting a specific price.