Order Types

Limit Order

Definition: A limit order allows users to specify an execution price. The order will only be filled when the market price reaches the specified price.

Features:

• Precise price control
• Execution is not guaranteed

Use Case: Suitable for entering or exiting positions at target prices rather than chasing the market.

Market Order

Definition: A market order is executed immediately at the best available market price.

Features:

• Fast execution
• May incur slippage during periods of high volatility

Use Case: Used for rapid entry, stop-loss execution, or urgent position closure.

Conditional Orders (Take Profit / Stop Loss)

Definition: When the market price reaches a predefined trigger price, the system automatically submits an order.

Types:

• Take-Profit Order: Locks in profits
• Stop-Loss Order: Limits potential losses

Use Case: Automated trade execution and risk management without continuous market monitoring.