This article is also available in Spanish(Español)
AlteumX Exchange has 4 different types of orders for trading: Market orders, Limit orders, Stop and Stop Limit orders.
MARKET ORDERS
Market order is the simplest type of all that executes immediately at the current market price.
The main advantage of these types of orders is that you’re guaranteed the fulfillment of the trade. However, market orders don’t guarantee price or allow for any precision in order entry, which can lead to costly slippage.
A market order is mostly used when the trader wants to quickly enter or exit a particular market.
LIMIT ORDERS
Limit orders are great when you are sure what price you want on your trade. It allows the trader to specify a maximum amount you are willing to pay when you buy or the minimum amount you are willing to receive when you sell. Additionally, they can be used to set future orders for profit taking on a long-term investment.
Limit orders allow control over the price of execution, but they do not guarantee that the order will be executed immediately or even at all.
STOP ORDERS
This order can help you limit your losses. If the market price reaches or crosses through the Stop price, your order is sent to the exchange as a market order
- Buy stop order — these are used to limit losses on short stock positions and are always placed above the current market price and filled only if the market rises.
- Sell stop order — these are used to limit losses on long stock positions and are always placed below the current market price and filled only if the market falls.
Stop orders are risky, especially in the crypto-markets where high volatility may cause your stop order not fulfill during a sharp price drop (or rise).
STOP LIMIT ORDERS
Stop-limit orders are more conservative than a stop order. A Stop-Limit order combines a Stop-Loss order with a Limit Order. To place a Stop-Limit order, you enter two prices: a Stop Price and a Limit Price. If the market reaches or goes through the Stop Price, your order becomes a Limit Order.
ALTEUM: https://alteum.io
AlteumX Exchange: https://www.alteumx.com/
Join our community!
Telegram: https://t.me/Alteum
Twitter: https://twitter.com/Alteum_Official
Facebook: https://www.facebook.com/alteum.io
Medium: https://medium.com/Alteum
Instagram: https://www.instagram.com/Alteum
