You will be told about this on the website, you will be told about this in the desktop version, you will be told about this (and even shown) in the mobile application.
And yet you are here, reading this article...
And that's why I'll do what I can to cover things that weren't mentioned in the tutorial.
Let's go! And we will start with the first type that everyone who has just got to the spot encounters - a limit order.
So, limit order.
An order that will be added to the order book and executed (either in whole or in part) at the price you set when it is reached. (Or rather, if it is reached*).
Exactly. The price may not reach your order. But let's not talk about that. Surely you have already used orders and know at least the basics.
Let's look at another case: what will happen if you place a limit buy...
And the price indicated in it is above the glass? The fact that it will be executed is not news.
But here's the question - at what price? And this question is not just like that, the execution price will not be the one you specified in the limit order, but the closest favorable price for you in the order book. The entire order (or its part up to the specified limit) will be executed 'market'.
(Including the commission you will pay as a taker. If you don't know how this works, look at the previous article.)
What this means for you is that you will 'bump' into other limit orders and fill them until your limit order is fully filled (or reaches the point where the order book is not enough to fill it).
And so, market.
Let's skip the point that I told about it almost everything that was necessary in the previous column. Therefore, we will consider 'additional' cases here too.
Let's say you buy $FLUX (it's here purely for the sake of example) at a price of - 0.555
You execute a market buy order and in history you have an average price of 0.56 why?
There are two possible outcomes here:
The first is that there were not enough orders in the glass (at the 0.555 mark) to fill your entire market, and you moved the price.
The second (and very similar to the first) - there were no orders in the glass initially. The last buyer bought everything/the last price is the selling price/the price just moved and no new orders to sell were placed.
There are many options, but the result is the same - the difference between the last price and the nearest one.
When executing market orders, you are always the taker.
Limit stop.
Here, in fact, I have already told everything that could be said. This is the same limit order. Just in the opposite direction.
For example, you want to sell an asset if it falls, but if you specify a price lower than the current one, it will be executed instantly.
A limit stop solves this issue.
Market stop.
And the water here is already interesting...
Market orders are executed instantly, so what is the stop?
And here we smoothly approach the first of the 'conditional' orders.
Correct. You have a condition, upon reaching which (in our case, the desired price). The market order will be executed.
Trailing stop (aka 'sliding' order)
An order that follows the price with a configurable step, and is executed in case of a rollback. Let's say you want to buy cheaper, but the price is still falling.
You place a 'trailing' buy order and it continues to follow the price as it falls, once the fall stops and the price moves back up by the set step the buy order is filled.
Usually comes with a 'conditional' activation.
For example, the price has risen to a certain level and only after that the order begins to track possible growth.
Conditional (as they are).
More complex versions of conditional orders have already been mentioned, and now we will talk about a simple one.
Here's a brief summary. It can be called 'conditional limit'.
Yes, that's all. The condition is reached - the limit is placed.
'Placement only'
This type of order is used to ensure that you always remain a maker and not a taker. This means that your order will always be added to the book but not executed immediately.
If it can be executed immediately (as a market order), it will simply not be placed. Useful for those who want to avoid unnecessary commissions and want to be sure that the order will enter the order book.
TWAP (Time Weighted Average Price).
This order is divided into several parts and executed gradually over a set time to smooth out the impact on the market. TWAP is used when you want to avoid sharp price movements, especially with large volumes. For example, if you need to sell a large number of assets, TWAP will divide them into smaller batches and execute them at equal intervals.
Split orders (Iceberg Orders).
This type of order allows you to hide the real volume of the order. For example, if you want to buy 1000 units of an asset, you can place a split order, which will show only a part of it (for example, 100 units) in the order book. Once this part is executed, the next part will be added to the order book. This is useful when you do not want to draw attention to a large order, so as not to cause a sharp price movement.
And now the situation is - the limit order was partially filled, and the price went away. How did this happen, and what next?
In fact, this topic has already been touched upon a little higher, from what should be added - it's just that not everything was bought/sold from you. The commission will be paid from this very 'part' of the order immediately.
There may be many reasons, for example, a queue, orders that were there before yours. A sharp movement in which your order was simply caught (for example, rebounds from support/resistance). Well, or the already mentioned situation, where the glass at the required level was simply not enough. (Although, unlike the previous 2, this is a case of a taker)
And what to do with it? The answer is simple - Nothing.
To be more precise, you know what you need. If you want to buy urgently, then 'move' the order, buy more at the market by canceling a piece, or something else. Or, really, just leave it as is.
Clarification: The information presented here does not claim to be reliable, always check the information received yourself (and do not hesitate to ask questions or correct the author if this is really necessary).
