There are many different types of Loan and Credit orders that investors use to manage transactions. Although they may differ depending on the broker, there are several basic types of orders that all brokers accept.
Knowing what it is and a solid understanding can help investors get in and out of the market properly. The types of orders allow for individual trading strategies. This article will discuss the main Loan and Credit orders and how to use them in live trading.
Introduction to types of Loan and Credit orders
Orders are key tools for the investor and should be taken into account when implementing a trading strategy. Orders can be used to conclude transactions as well as help to protect profits and limit the risk of losses.
Understanding the differences between the available order types can help you determine which orders best suit your needs and which ones are best suited to achieving your investment goals.
“At market price” order
Order at market price is probably the most basic and often found by Loan and Credit investors. As the name suggests, orders at market price are carried out directly on the market. This means that if you want to immediately take a position, you can trade on it at the applicable price.
Typically, scalpers and daily investors rely on this type of order to quickly get in and out of position.
The EUR / USD exchange rate below shows the purchase and live sales prices. A market order for a purchase at the price of 1.1101 will be processed immediately after pressing the “Buy” button. The same applies to the short position (Sell).
This situation applies to any other currency, commodity or share.
The order at the market price is the most basic type of order. It is carried out at the best price available on receipt of the order.
Price Limit Orders
There are two types of price limit orders related to Loan and Credit trading:
Orders with a price limit to open a position
The first one is an entry order with a price limit. It will get a better entry price. A price limit order is an order to buy or sell at a specific or better rate. The order with the sale price limit is carried out at a certain price or higher. Purchase orders with a price limit are carried out at a certain price or lower.
If the EUR / USD exchange rate is 1.1099 and you thought it would fall to 1.1060 before the game starts, you can place an order with a buy price limit of 1.1060.