Most people commonly use limit orders, especially during periods of significant price fluctuations, to trigger their expected price point, knowing how much profit or loss they might have.
The main types of orders in trading are as follows:
Market Order
- Definition: An order executed immediately at the current market price, where the user does not specify a price but buys or sells at the best available price in the market.
Limit Order
- Definition: The user specifies a particular price for buying or selling, and the order will only be executed when the market price reaches or exceeds that specified price.
