Trading News and Information

Highlights On Trading Orders

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As you know, trading involves buying and selling and making a profit. But, the conditions of purchase and sale are determined in the orders that are given to the broker, and this dramatically affects your operation. What are these orders?

Knowing the types of existing trading orders is primary since, as a trader, you must have precise control at all times of the operations that are carried out (the entry and exit of the market) and how they are carried out. In this article, we will show you what these orders are and in what situations or day trade it may be interesting to use one or the other.

Market order

This is the most basic order. The broker indicated the intention of entering or leaving the market (that is, opening or closing our position) at the current time and at the price that exists at the time it is launched. The order will be executed immediately, the price for the purchase will be the Ask (offer price) and, in the case of the sale, the Bid (demand price) will be applied.

Limited Orders

In addition to being able to enter and exit the market at the time of the launch of the trading order, you also have the possibility of leaving a specific price established so that the order is carried out when it is reached. These types of trading orders remain active, but will not be executed until the financial asset on which it is being traded does not reach the quoted price.

Buy Limit Order

This type of order is used to buy at the indicated Ask price or more favorable. In other words, buy at an equal or lower price. The order will not be executed if the market does not reach the indicated price (as in any limited order).

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