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 lower)" or "I want to sell this currency only if its price reaches this limit (or higher)".

* When do you use it? When you have a clear idea of the price you consider 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 offered 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.

3. Stop-Limit Order:

* Imagine: This order combines the concepts of "stop" and "limit". You set two prices: the stop price and the limit price.

* How does it work?

* Stop Price: When the price of the currency reaches this price, your limit order is activated.

* Limit Price: After the order is activated, it becomes a regular limit order at the price you set (or better for buying, or worse for selling).

* When do you use it? Often