Order types define how trades are executed, giving traders flexibility and control. Understanding the differences between order types is crucial for effective trading.
Our platform supports the following order types:
Market Orders
Executes immediately at the current market price.
Use Case: Ideal for fast-moving markets when you need immediate execution.
Limit Orders
Executes only when the market reaches a specified price or better.
If the price set in a limit order is worse than the current market price, the order will execute as a market order.
Use Case: Useful for entering or exiting trades at a specific level, ensuring better control over price.
Stop Orders
Triggers an order when the market reaches a specified price.
Use Case: Often used for stop-losses or breakout trades.
When to Use Limit vs Stop Orders
Limit Orders: Use when you anticipate a price retracement before execution.
Stop Orders: Use when entering on momentum or as a safeguard against losses.
Take Profit and Stop Loss Relationship
Stop Loss: A Stop Loss is essentially a Stop Order that triggers a market order to close a position when the market price reaches a specified level, minimizing potential losses.
Take Profit: A Take Profit is essentially a Limit Order that closes a position when the market reaches the specified price, locking in profits.