There are multiple ways of opening a trade in a trading terminal.
Here is the list of universal order types that you MUST know:
1. Market Order
A market order is a trade order to buy or sell a desired financial instrument on a current market price.
In such an order type, the price is determined by the market.
Constant price fluctuations and spreads make market order quite risky way of opening a trading position.
2. Limit Order
A limit order is a trade order to buy or sell a desired financial instrument at a specific price level. It allows the trader to enter the market on a strict price level ignoring the price fluctuations and spreads.
A limit order can be referred to as a buy limit order or a sell limit order.
3. Buy/Sell Stop Order
Buy stop order is used to buy at a price above the market price, and it is triggered when the market price touches or goes through the Buy Stop leve.
Sell stop order is used to sell when a specified price is reached.
The selection of order types is based on a trader's trading style.
Let me know in a comment section which order types do you apply in your trading!
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