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BusinessTypes of Orders in Trading Platforms - What’s important to know

Types of Orders in Trading Platforms – What’s important to know

In the next paragraphs, we are going to discuss one of the most widespread topics in the financial field. This guide is, in fact, dedicated to online trading or, in other words, to the trendiest phenomenon in the field, since it’s capable of allowing people with limited funds to have access to its markets, regardless of the fact that we are always talking about a highly risky investment method.

With that said, it’s important to underline that online trading is also a very dangerous way of investing money and, for this reason, it takes knowledge and adequate formation to operate in its wide and various markets.

Technically speaking, online trading consists of the practices of buying and selling different financial aspects: from actions to currencies, arriving at options, and precious primal matters.

Online trading composes of several shades. Someone interested in investing in this paradigm has to develop certain skills before operating in its markets.

This guide fully focused on the Types of Orders in Trading, what they are, and how the orders can use in online trading platforms: a necessary tool to invest in the online trading market. This software held by broker companies. One of the first steps to success in online trading is, for sure, using the ones from the best operators in the field such as Fineco.

What are Stock Orders in Online Trading? A Technical Definition

Market orders are an instruction useful to open or close a transaction. Initially, placing the orders can look extremely easy, but as a matter of fact, it’s possible to get the best from the platforms’ user experience by taking advantage of the different functions that are available on the software. To negotiate in the best way it’s required to keep monitoring every movement, in order to not expose the capital to too many risks.

Investors that only use the functions of buying and selling on platforms can encounter several losses due to slippage or negotiating without a stop-loss order capable of protecting the funds.

Speaking of slippage, we can identify it as the difference between the foreseen price and the one to which the operation actually close. Stop-loss orders are, for this reason, capable to limit the losses while negotiating, closing automatically the losing trades at predetermined price levels.

Types of Orders in Trading

More than the stop-loss which we discussed later, we can find short and long orders, usable to define the different positions in which it’s possible to open the positions.

Long positions give profits coming from rising markets, while shorts’ profits are related to falling markets.

Market orders represent the quickest and most trustable way to enter and exit from a trade. Limit orders are useful to guarantee a certain price, while stop orders use to start a limit order or a market one when a specific price is reached in an operation.

Knowing how to use Stock market order is important just as much as being able to understand when to use it. For this, we highly recommend you deeply study every platform’s function before operating with trades.

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