#OrderTypes101
#OrderTypes101 Let's break down the concepts of Market Price, Stop Loss, and Trailing Stop Loss:
*Market Price:*
The market price is the current price at which a security (such as a stock, option, or futures contract) can be bought or sold in the market. It's the price at which buyers and sellers are willing to trade.
$ETH
ETH
2,751.99
+8.48%
1.338
+13.39%
*Stop Loss:*
A stop loss is an order that instructs a broker to sell a security when it falls to a certain price, known as the stop price. The purpose of a stop loss is to limit potential losses if the market moves against the trader's position.
*Types of Stop Loss:*
1. *Fixed Stop Loss:* A fixed stop loss is set at a specific price level, and the order is triggered when the market reaches that price.
2. *Trailing Stop Loss:* A trailing stop loss is set at a certain percentage or dollar amount below the market price. As the market price moves in favor of the trader, the stop loss price is adjusted accordingly.
