In this video we explain the types of trading orders.
We divide them into two types:
INSTANT ORDERS: These are buy or sell orders, which are executed exactly at the same time we press the buy or sell button.
PENDING ORDERS: These are orders that will be executed in the future, if the price reaches the level that we have indicated. There are two types, Stop orders and Limit orders.
- BUY STOP: It is used to place a purchase order at a higher price than the quote price. If the stock is trading at $ 10.00 and we place a buy stop order at $ 10.10, it will be executed when the price reaches or exceeds $ 10.10.
- SELL STOP: It is used to place a Sell order at a lower price than the quoted price. If the stock is trading at $ 10.00 and we place a sell stop order at $ 9.90, it will be executed when the price reaches or falls below $ 9.90.
- BUY LIMIT: It is used to place a Buy order at a price lower than the quote price. If the stock is trading at $ 10.00 and we place a Buy Limit order at $ 9.90, it will be executed when the price reaches or falls below $ 9.90.
- SELL LIMIT: It is used to place a Sell order at a price higher than the quoted price. If the stock is trading at $ 10.00 and we place a sell limit order at $ 10.10, it will be executed when the price reaches or exceeds $ 10.10.
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