Stopping by Trading Orders Types

In a recent brief review of the crypto market, we stated that ‘crypto-currencies are traded 24/7 and everyone can catch his or her lucky moment of profit.’ But a trader is also human and needs rest too. How not to miss a lucky turn of the price? In this article, we will recollect how useful market orders can become in this case and count again their most popular types.
 

The definition of the term ‘order’ is simple: this is a statement that the trader sends to the trading system to make a particular trading operation. I.e., any of your ‘buy’ or ‘sell’ clicks in the system is an order.

But clicks can be different. All types of orders can be divided into two major categories: ‘buy orders’ and ‘sell orders’ (which is clear), as well as into ‘market orders’ and ‘pending orders’.

The first category, ‘Market order’, is a trader's order to perform an operation at the current market price (or within a small price interval). The buy/sell is made instantly, at the ‘ask’ price (the demand price) or at the ‘bid’ price (the offer price), respectively. That is, a market order is when you click ‘buy’ or ‘sell’ in the trading terminal and the desired operation happens immediately, here and now.

But buy/sell can be made at a different time, not immediately. This is the second, more complex category ‘Pending orders’, there are lots of them. A pending order is an order from the trader to the trading system to make a trading operation when the price reaches a certain pre-set level that differs from the current. That this may not happen immediately, but later, both in a few seconds and after many days, differentiates pending orders from market orders. Pending orders can be:

Buy Limit — purchase when the ‘ask’ price reaches a pre-set number in case the price drops to a certain level and starts to grow (a buy order at a price lower than the current one);

Buy Stop — purchase when the ‘ask’ price reaches a pre-set number if the price exceeds the set level and continues to grow (a buy order at a price higher than the current one);

Sell Limit — sell when the ‘bid’ price reaches a pre-set number if the price has risen to a certain level and starts to decline (a sell order at a price higher than the current one);

Sell Stop — sale when the ‘bid’ price reaches a pre-set number if the price reaches the set level and continues to decline (a sell order at a price lower than the current one).

This list of orders types is not complete, but sufficient for a newbie trader to flex his trading muscles. We advise you to continue this reading with our article ‘How do I place a Stop Loss and Take Profit?’ about stop-loss and take-profit orders, which some refer to as pending ones, while others believe they are in a separate group.

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