Update #69: Writing Expedition ✍️ Wednesdays: Crypto/technology

Hi Steemians,
It's another day of the week and I'm delighted to participate in this contest today organized by @steemkidss which talks about Writing Expedition ✍️ Wednesdays: Crypto/technology. I will be making my entry below so read through it and drop your valuable comment as it will be appreciated.

Source

Today I want us to look at market order and how to effectively use the different market orders we have when trading. Because of the want of time and for the details not to be too much for our consumption I will discuss only two types of trade order which are the commonly used once.

The two trade order I will want us to look at are limit order and the market order. These are the commonly used orders in the market which traders always choose from. So let's start with the first.

Limit order

By default, when you open an exchange platform such as Binance, Bybit etc and you go to trade be it spot or futures when you want to place a trade you will always see the order type is set to limit order.

Now what do we mean by limit order? Limit order in trading means that the buyer or a seller has to set a price which the trade will trigger when it gets to the position he or she desired.

This means that if the current price of the asset is at $0.2 and you want to short the market but you want to price to go below $0.2 first before doing that then your can pick a number below 0.2 and when the price falls below 0.2 then it will activate the trade.

A good example is if the price is at $0.2, I want to enter the market at $0.15, I will just set my order and if the price drops to this level even if I'm not present in the market the market will execute and continue trading.

Market order

Market order as the name suggests, it is a type of order that execute based on the current price of the market at the time you wish to enter the market. Now let's take a clear example below.

Imagine the price of the asset you want to trade is at $0.2 and you want to enter the market using this order to buy or sell, the market will immediately execute the order because the instructions while using this order is that you should execute the trade at the current market price.

So for those trading crypto it is important you know the difference between these orders and especially those who get signal from other sources to trade. They always tell you to either use the limit order or the market order for groups that everyone is online at the same time.

Here I will want to invite a few friends to also join the contest and share their entries as well. I invite @josepha, @ruthjoe, and @bonaventure24 to also share their participation in this week's writing expedition contest.