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What are market orders, limit orders, stop-limit orders?

When you want to place an order to sell or buy stocks, you have two fundamental options which include;

Placing the order at the market. Market orders are those transactions that are executed immediately at the current market price.

Place the order at the limit. Limit orders arrange the minimum or maximum price that you can buy or sell.

These different types of orders are used to buy valuable commodities such as stocks, shares, cryptocurrency and more. Buying a stock is like buying a car. With the way you negotiate with a car dealer for the price of the car, you can negotiate the price of your assets and refuse to sell until your valuation is met. So if the value of the order rests outside of the set parameters of the limit order, the transaction will not occur. There’s more information on this process on Yuan Pay Group

Market Orders

A market order is a command to buy or sell securities at the best price on the market. When you’re placing a trade online, hitting the buy and sell button immediately fulfils an order. Your market order will render at the nearest asking price and a market sell order will execute at the nearest price bid.

Market orders are issued mostly when traders want to buy and sell security either to avoid a potentially profitable move or cut their losses. Market orders will ensure that a trader will enter or exit a sale as fast as possible but not at any guaranteed price. You can use market orders mostly for liquid traded assets such as exchange-traded funds (ETF), large-cap Stock, and cryptocurrency. These commodities are bought or sold at or close to the investor’s price.

Limit Order

A limit order is a command to sell or buy your assets at any price or more. A sell limit order is executed at the limit price or higher while a buy limit order is executed at a limit price or lower. However, limit orders are not a guarantee as the order will only be acted upon if the asset’s market price reaches the limit price. Although having a limit order is not a guarantee that your order will be fulfilled but they’re essential because they ensure you don’t pay more or receive less than the set price.

Stop Limit Order

A stop-limit order combines the characteristics of limit and stops orders to give the trader more control over the execution of their trade even though nothing is guaranteed. To execute a stop-limit order, you need to set a stop price which usually is the start for the target price for a trade, a limit price and a timeframe for execution. When the desired assets reach their desired stop price, the limit order kicks in and is executed only when the asset price is at or better than the specified limit price.

How to place your market, limit and stop-limit order?

To place your market order;

Select the market tab under the orders form section of the trade view

Choose to buy or sell then enter your size order. This can be set in any supported currency.

Then you confirm the order with the mindset that market orders cannot be cancelled once they’re filled.

To place your limit order

Select the limit tab from the order section of the trade view

Choose if to buy or sell

Enter the size of your order and price then proceed to the advanced settings to select to post only or allow the taker

The place your order to submit your order

To place a stop-limit order

Select the stop tab on the orders form of the trade view

Select if you’ll like to buy or sell

Specify the amount and stop price at which you’ll like to have your stop order

Specify the limit amount and the stop order will automatically post the limit order at the limit price

Conclusion

Whatever means you decide to trade your orders, be conscious of the trading fees of each platform. Each cryptocurrency or brokerage exchange has its rules and fees based on the broker, trading platform and eventually your trading volume. Take time to read these rules to get an understanding of what they mean.

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