What is the Difference between Market Order
There are different types of indices trader orders which a indices trader can use to trade in Indices.
At the foundation of successful indices trading is making use of the correct indices order for its correct purpose. The most important things to remember about is indices orders: Always understand the indices orders you place and never place a indices order which you are not entirely knowledgeable about. Definitions of the commonly used types of indices orders:
Limit Indices Trading Order and Stop Indices Trading Order
Stock Indexes Market Order
Market order is the most basic type of indices order, market order is used to buy or sell at the current ask or bid quote trading indices price. This refers to the quoted stock indexes price that appears on your indices trading platform.
This type of stock indexes trading order is used for buying or selling according to the present exchange rate quotation in indices trading, the execution is instant. The minute you want to enter a indices trade position you can buy and sell at the current stock indexes price at a click of a button using a indices market order.
Pending Indices Trading Orders
These are stock indices orders used to open a new indices trade position after the stock indexes trading market reaches a indices price specified by the indices trader.
Entry orders are used to buy or sell when stock indexes price when it attains a certain stock indexes price target.
When a specific stock indexes price level is reached or broken then a indices pending trading order is executed.
These Pending Indices Trading Orders are used to enter a indices trade at a specified stock indexes price level. It is almost impossible to monitor the indices market every second and this is why a indices order can be used by a indices trader. If you feel the stock indexes market price may take a certain action, such as break through a particular stock indexes price level that it has been touching but it has not been able to break, you would want to use an Indices Pending Trading Order. Once the stock indexes trading market crosses your specified stock indexes price level, your pending indices trading order trade order will then be executed.
There are two types of indices pending trading orders - stock indices limit order and indices stop order.
Limit Indices Trading Order
An order to buy or sell at a certain limit.
An stock indices limit order can be used to buy below the current stock indexes price or sell above the current indices price.
When buying, stock indices limit order is executed when the stock indexes price falls to your limit level.
When selling, stock indices limit order is executed when the stock indexes price rises to your limit level.
These Limit Indices Trading Orders are placed by indices traders when they expect the stock indexes trading market to bounce back after reaching the retracement stock indexes price level at which the stock indices limit order was placed.
Buy Limit Indices Trading Order
Specifies to buy at a level below the current stock indices market price
Sell Limit Indices Trading Order
Specifies to sell at a level above the current stock indices market price
Stop Indices Trading Order
A indices stop order is a pending stock indices order that is used to buy above the current stock indexes price or to sell below the current indices price.
When buying, indices stop order is executed as the indices market goes up and hits the buy stop level.
When selling, indices stop order is executed as the indices market goes down and hits the sell stop level.
- Buy Stop Indices Trading Order
Specifies to buy at a level above the current stock indices market price.
- Sell Stop Indices Trading Order
Specifies to sell at a level below the current stock indices market price.
What is the Difference between Stop Indices Trading Orders and Limit Indices Trading Orders in Indices Trading?
How to Differentiate Between Stop Indices Trading Orders and Limit Indices Trading Orders
Stop orders are set to buy above or to sell below the current market indices price
Limit orders are set to buy or sell at a better stock indexes price after a indices price retracement.
It is easier to first of all remember one concept. The easier concept is that of Stop Indices Trading Orders - Stop Indices Trading Orders are set above and below the current market indices price.
To learn how to set up these indices pending trading orders read the articles:
What is the Difference between Market Order - Stop Indices Trading Order and Limit Indices Trading Order