If you entered Futures and got a super menu... relax! I'll explain ☕
💡 First thing:
Don't touch buttons just for the sake of it. Each type of order has a purpose. Here’s a "quick dictionary" of orders so you don't accidentally self-liquidate:
🟢 1. Market Order
Buy or sell immediately at the current price.
💬 It's like saying: "Go, at whatever price!"
✅ Use it if you need to enter or exit quickly.
⚠️ Risk: In times of high volatility, you may end up buying at a higher price or selling at a lower price than you expected (slippage).
🟡 2. Limit Order
You choose the price at which you want to buy or sell.
💬 It's like saying: “I only buy if it drops to this price.”
✅ Ideal if you are waiting for a better price.
🔁 It stays on hold until that price is met.
🟣 3. Stop Limit
It's a double order:
🔹 If the price reaches a certain point (the stop),
🔹 a limit order (the limit) you defined is activated.
💬 It is used for: cutting losses, securing profits, or entering when a trend is confirmed.
✅ Accurate, but it may remain unexecuted if the price moves quickly.
🔴 4. Stop Market
Similar to the previous one, but when activated, buys or sells at the market price.
💬 Faster than the Stop Limit, but with less control over the exact price.
✅ It serves to set secure Stop Loss or Take Profit.
🔁 5. Post Only
Only place the order if it is not executed immediately, ensuring you are a "Maker" (you pay less commission).
⚠️ Not necessary if you are just starting, it may confuse you more than help you at the beginning.
🔃 6. Trailing Stop
It's like a smart Stop Loss that moves in your favor.
💬 If the price rises, your “stop” rises as well.
✅ It protects you without limiting your gains if the market moves in your favor.
⚙️ 7. TWAP (Time Weighted Average Price)
Divide your large order into parts and execute them at intervals.
💬 More suitable for advanced traders or institutions.
❌ If you are just starting, don't complicate yourself with this yet.
👇 Which one should you use if you are a beginner?
Target Recommended Order
Enter or exit quickly Market
Buy or sell at a better price Limit
Set Stop Loss / Take Profit Stop Market
Automate secure entries Stop Limit
🎯 Final advice:
Before clicking any button, have a clear strategy.
Knowing when you will enter, how much you will risk, and when you will exit is more important than choosing the perfect order.
