How to Place Buy And Sell Order? Part 2

As we discussed yesterday we saw when an order book is and how the sell and buy other in an Exchange gives us information of a particular Coin in pairs, the trading volume and price. We will see how to actually place this by and sell order. If you're to go to your binance exchange from the order book, you'll see different options for placing orders.

You can either choose to buy or sell using these options. Options for placing orders means the limit order as first, the market order second, the stop limit as third, the trailing stop and then the OCO. These are the different types of orders used for placing orders as shown in the screenshot. Let's take the first order which is the Limit Order.

This is an option where there's a limit in buying coins of which you can do so at any price instead of the amount or price of the market. Suppose the price of the SOL coin is $107 at the moment. If you want to buy the same coin for $107, then you can buy through limit order.

But your order will be carried out only when the price of the Solana coin will be $107. This way, one can actually place a sell order using the limit order at the price you want. I.e there's a limit and you can actually buy a coin at the price you want.

If solana is $107 and you have $50, you can purchase $0.47 or so of it. The limit order gives you a space to enter the price you want to buy the coin and in the amount area, you'll input the amount of coin you want to buy. And place order by clicking on either the Sell or Buy. I can remember buying bits of Solana from this order book. One can use the convert icon but their charges are high though.

The market order is quite different from the limit order. The limit order actually has limit on the price you want and amount of coins at which you want to buy but in a market order, it's otherwise. When you trade in market order, we buy and sell according to the price of the market or market trend and in market order, we can't input our own price as does in the limit order.

The market order means our order will be completed based on the price the sale will be in the market at the placing order time. When you click on market order, the market order buy and sell will appear and in the place of price, the word Market will appear there. This means that whatever is bought or sold would be at the price that is the market price. So we can actually place orders using the market order.

A stop limit order is actually an order in which a trader puts his order in the market and then completes that order with his limit price voluntarily. Let's assume a trader wants to buy or sell solana coin and he wants to use the stop limit order to complete his order, he'll have to choose support and resistance levels and then place his order.

We'll need to understand at what price and when we will buy a particular Coin as this is actually the main point of the stop limit order to understand this order placing. We'll observe the support level of the price of Solana and where we think if the price falls to from the support level, then our buy order will be placed in the market. After placing the order in the market, our order will be bought at our limit price.

Like I said earlier, if the price of a coin falls below this price, then the place in my order market will be triggered and the coin should be bought on the limit price imposed. We put the Stop-Limit Order in the purchase. I'll then write the price at the place of stop where I want to trigger my Order in the market and at the place of limit, I will write the price at which I want to buy the Solana coin.

In conclusion, we've seen various options where we can actually place orders when it has to do with buy and sell. The limit order is widely used especially in spot trading and futures. A trader can set the price he wants to buy and the amount he wishes to buy . Can one actually be profitable with trading with these orders?

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have

All screenshots gotten from binance