#OrderTypes101 The topic of orders should be fundamental knowledge before diving into investments, as determining the buying moment can be very beneficial. What would be the main ones?

1) Market Order: This means that whether buying or selling, you are governed by the price at which the market is at that moment. The quote varies from each exchange but can last a maximum of 15 or 20 seconds, which limits you since the price tends to be volatile. Thus, you could buy at a significantly high price or cheaper depending on how quickly you make the purchase. Additionally, when executing market orders, the exchange fees tend to be higher, which means that when you buy, you will not receive everything you thought you would.

2) Limit Order: This type of order is more effective if you do not want to be constantly monitoring the price. You can place one or several orders at the price you would like to buy, meaning that when the price reaches your ideal price, the order will be executed. If your strategy is to accumulate during a drop, the best thing you can do is to buy with limit orders, as no one knows exactly when a drop will end. By buying in different zones, you will have an average purchase at a low price. This also works when the price rises, as the same scenario applies: no one knows exactly when the market will stop rising, and if you wish to buy or sell, you can execute this type of order.

These are the 2 main types of orders in the market. Knowing them will help you make better use of your transactions and your time.