What is Limit Order, Market Order, Stop Order?

BiKi Perpetual Contracts - What is Limit Order Market Order Stop Order
BiKi Perpetual Contracts – What is Limit Order Market Order Stop Order

What is Limit Order?

limit order allows traders to preset their order price, size and leverage. Orders will be executed when market price matches or exceeds the preset price.

Traders who choose this option usually are price sensitive and will only take a position when the market price matches the opening price.

Buying Example:

Before Bianca goes to office, Bianca wants to open a position at a preset price of 57,500, so she used limit order of 57,500 , if the BTCUSDT price matches or exceeds 57,500, Bianca’s limit order will be triggered immediately to open her position in BTCUSDT contracts.

 If the BTCUSDT price remains lesser than 57,500, Bianca’s limit order will not be executed.

What is Market Order?

Market Order is an order to buy or sell a stock at the market’s current best available price. It is the most basic buy and sell trades. 

Traders who choose this option usually are not price sensitive and want to take a position immediately. 

What is Stop Order?

A stop order is a trigger to the existing position to close its position when market price matches or exceeds the preset price.

After opening a position with “Limit Order” or “Market Order”, trader can place a stop order with a trigger price to close its position. 

Example: 

Bianca has a open position of 57,500 for BTCUSDT, before Bianca goes to sleep, Bianca wants to close her position at a trigger price of 59,000, so she placed a stop order at 59,000 , if the BTCUSDT price matches or exceeds 59,000, Bianca’s stop order will be triggered immediately to close her position in BTCUSDT contracts.

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