Trading order types with TradersClub24 Experts
With trading order types, expected buying and selling prices can be better planned
The TradersClub24 contains a lot of valuable information that can be used to put the success of the investment on an even greater knowledge foundation. Simply put, an order refers to the placing of an order to the broker. Under the order, securities or derivatives are purchased or sold. A purchase or sale order can be designed by additional information so that the transaction is performed only when certain conditions are met. In addition, you have the possibility to supplement each order with a Stop Loss or a Take Profit.
With the help of Stop Loss, you can set a price target where the order is automatically closed if you do not want the trade to develop in your predicted direction as desired. With take profit, you define the profit threshold at which the position is automatically terminated by the broker.
Significant types of trading orders for the purchase of securities
The Market Order has gained enormous importance, especially through the fast data transfer or transmission of orders in the area of trading order types. As an investor, you place the order to purchase a security at the current price or at the next possible execution. The advantage: You can calculate the cost price immediately and align your strategy with the then new deposit stock. From this point on, you will benefit from rising or falling prices depending on whether you have opened a buy or sell order.
The trading order type “Buy Stop” is particularly interesting when you expect prices to rise as investors. For example, take the current 200 day line as an orientation and do not want to buy a security until this value has been exceeded, so enter the buy stop order.
For example, if you want to buy a default value at a price that is favorable on a day-to-day basis, you could enter a normal purchase limit. This would be your maximum price per piece (before fees). This is one of the types of trading orders that are probably most commonly used.
Trading order types for closing positions (sale)
“At the best available price” is the limit for an order when the sale is to be carried out at the current market price or with the next achievable execution. Among the trading order types for sale, this is the fastest variant.
A “Sell Limit Order” (could also be referred to as a “profit take- or “profit assurance” if you have previously opened a buy position and want to close it in the profit). If you use the addition of Take Profit in your buy order, this profit protection is realized with the help of a sell limit order. You can also use this order for your initial position opening. A Sell Limit Order can be used especially if you expect the price to reverse as soon as the limit level is reached.
When selling securities, you can also place an order that triggers the sale just when a price level you set is lower. The main idea behind this type is that they take the upward trend of a security with them and then, so to speak, pull the automatic rip line if the trend reverses. This order may be one of the most underrated species, because the slow slide from the peak is often perceived by investors only with some delay. This order is called a Sell Stop Order.
This small overview of some trading order types or limit entry should invite you to think about securities and investment strategies. In view of the widest possible reduction in interest rates on bonds and fixed-income securities, alternative forms of investment, for example in the form of day-trading, are almost indispensable. So register today for guest access at TradersClub24 without obligation and learn all about Stop Loss,Take Profit, Trailing stop and other trading order types. In any situation, you are equipped to open and close your position correctly.