📚Coinstore Classroom: Crypto Trading 101 — Part 3 😋
Hello again Coin Collectors,
Carrying on from the previous part of Coinstore Classroom📒, on basic terms or phrases, we would like to share with you. We hope that through this corner, we are able to share with you some knowledge and tips 💡 on cryptocurrency! As such, we hope to be able to share and educate you on the basics and necessary information of cryptocurrency, so that you are able to make a more informed decision when trading crypto.
For this session of Coinstore Classroom, we will be sharing with you terms frequently used during futures trading.
Here are the 4 terms or phrases we would like to share with you:
1. Buy Limit Order:
A buy limit order is an order to purchase an asset at or below a specified maximum price level.
A buy limit, however, is not guaranteed to be filled if the price does not reach the limit price or moves too quickly through the price.
Buy limits control costs but can result in missed opportunities in fast moving market conditions.
2. Market Order:
A market order is an instruction to buy or sell a security immediately at the current price. A limit order is preferable if buying or selling a thinly traded or highly volatile asset.
3. Stop Order:
Stop orders are orders that are triggered when a stock moves past a specific price point. Beyond that price point, stop orders are converted into market orders that are executed at the best available price.
Stop orders are used to limit losses with a stop-loss or lock in profits using a bullish stop.
4. Take-Profit Orders (T/P):
Take-profit orders are limit orders that are closed when a specified profit level is reached.
Take-profit orders are beneficial for short-term traders interested in profiting from a quick bump in the security costs.
5. Stop-Loss Orders (S/L):
A stop-loss is designed to limit an investor’s loss on a security position that makes an unfavourable move.
One key advantage of using a stop-loss order is you don’t need to monitor your holdings daily. A disadvantage is that a short-term price fluctuation could activate the stop and trigger an unnecessary sale.
6. Stop-Limit Orders:
Stop-limit orders are a conditional trade that combine the features of a stop loss with those of a limit order to mitigate risk.
Stop-limit orders enable traders to have precise control over when the order should be filled, but it’s not guaranteed to be executed.
It is often used to lock in profits or to limit downside losses.
Here are another 6 basic terms for futures we thought you should know before making trades in the cryptocurrency market! Stay tuned for part 4, to find learn more terms and phrases regarding cryptocurrency trading! 😉
It’s never too late to start diving into the world of cryptocurrency. Whether you’re young or old, a pro or a newbie, Coinstore welcomes you to our arcade where we learn together… the fun way! We make cryptocurrencies available for everyone in a sleek, exciting and simple fashion, equipping you with experience and techniques to buy, sell and trade on the go.
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