Understanding the trading terminology used in the Binance app can be helpful for navigating the platform effectively. Here are some key terms and concepts commonly used in trading:
1. Market Order :A market order is an instruction to buy or sell an asset at the best available price in the market. When placing a market order, you are willing to accept the current market price.
2. Limit Order : A limit order is an instruction to buy or sell an asset at a specific price or better. When placing a limit order, you specify the maximum price you're willing to pay as a buyer or the minimum price you're willing to accept as a seller.
3. Stop-Loss Order : A stop-loss order is a type of order that is triggered when a specified price level is reached. It is designed to limit potential losses on a trade. For example, if you own a cryptocurrency and want to protect yourself from significant losses, you can set a stop-loss order at a certain price level. If the price reaches or falls below that level, the order is triggered and your asset is sold.
4. Take-Profit Order : A take-profit order is an order to automatically sell an asset when it reaches a specific price level. It is used to lock in profits or exit a trade at a predetermined target price.
5. Bid : The bid refers to the highest price that a buyer is willing to pay for an asset at a given moment. It represents the demand side of the market.
6. Ask : The ask refers to the lowest price at which a seller is willing to sell an asset at a given moment. It represents the supply side of the market.
7. Order Book : The order book is a list of all the outstanding