Explain to me the methods of trading in the spot market
I will teach you the methods of trading in the spot market because many may not understand some methods and their implementation. I hope that my explanation is clear to everyone.
The first way is "request a limit".
In a limit order, you specify the amount you want to purchase. If it reaches the price you set, the purchase will be made immediately. For example, if you set the limit of $1, the purchase will be executed.
The second method is "market order".
In a market order, you will buy at the market price immediately without specifying the price, but this may cause you a problem because the price may drop more than the price at which the order was executed.
The third method: “Request to stop the limit.”
In this method, you want to buy at a price of 0.90, and the sale or purchase will be executed at the limit price that you specify, but in an indirect way, such as when you set the condition limit in the first option, which is that if the price reaches $1, the condition will be activated as soon as the price reaches 0.90, the purchase or sale will be made according to what you specify.
The fourth method is "one request cancels the other"
This order is suitable for professionals as two orders are executed in one order, a sell order and a buy order.
How does this happen? In the first option, you determine the selling price. If it reaches, for example, 1.5, you sell and take the profit. This is how the condition is implemented.
In the option below the stop loss request, you place the first thing that the condition is executed. For example, you place $1 and the condition is executed, buy or sell at 0.90, so that you do not lose in the market. This method is more useful in stopping the sale than in stopping the purchase.
The fifth method: “Stop order at market price”
This method is similar to the market price request, but the difference here is that you specify when the condition starts. You specify the condition that if the price reaches $1, the condition is activated. As soon as it drops below $1 or rises, the purchase is made.
The sixth method: “Stop bidding.”
This method is implemented in two ways. You must pay attention to understanding the implementation of the method.
In the bidding stop method, you set a condition for the succession difference, for example, $1, and you specify the percentage here. As soon as the price reaches the required limit, the condition is executed. How is the condition executed? If the price drops less than 1% or rises 1%, the condition is executed. This method is suitable for volatile market times and you do not expect any price for buying or selling. This is more useful for selling than buying.
This is all the instant trading methods I have finished. I hope everyone benefits. Like and share the article so that everyone can benefit.
