Understanding market orders when buying and selling
Did you know that as a trader you have the opportunity to take advantage and dictate exactly what price you want to buy or sell a specific asset at? Continue to read this article and explore the golden possibilities of limit orders.
With limit-buy and limit-sell order, the investor has the opportunity to input orders with dictation on the exact price the trader would like to sell or buy at. Fundamentally this can hugely increase a trader's chance of, "buying low and selling high", and carrying out a strong investment strategy. In short, a limit-buy order is an order that can only be executed in the market when the given asset's price is at a specific value (or lower in some instances) defined by the individual actually buying the asset. In parallel, a limit-sell order is an order that is solely executed when at the limit price, defined by the seller, when the price of the asset is at, or higher than the given limit.
It is important to note that although with limit-buy and limit-sell orders for any investment of CFDs from stocks, commodities, cryptocurrencies, and foreign exchange, the order might not be filled exactly as the buyer or seller dictates for reasons of other investors and prices in the market.
Maximizing the tools at hand and using limit-buy and limit-sell order can be hugely beneficial in situations where the market is hot and oversaturated with the assets you're interested in being overvalued. Another instance where they can be key is quite the opposite when the market is in a slump and you believe the assets at hand are undervalued and you are trying to get the most potential profits out of the sale.
In addition to limit-buy and limit-sell order, investors can explore the tool of stop-loss orders. In essence, similar to the other two tools, stop-loss orders tell the system when the investor wants to sell the asset to avoid major losses in the market. It is also vital to note that stop-loss orders may not be filled exactly as the dictation for the reason of the open market and other investors.
So, will you be using the priceless and deeply valuable tools of limit-buy, limit-sell and stop-loss order to ensure your say is dictated when investing in the markets? Be sure to check with your investment platform and provider to understand all the educational tools and options available to you to ensure you build a premium training strategy.
This article was written and submitted by IGM FX.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your https://www.igmfx.com/money.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.
