When starting to Trade Stocks, the first thing to understand is "Limit Order」and「Market Order". These are the most basic Order methods,and should be learned as fundamental actions in stock investment.It is important to prepare in advance. This article will explain in detail the mechanisms of each order method and their useful scenarios.Limit Order: An order method that specifies the transaction price.A Limit Order is an order method that specifies the buy/sell transaction price. For example, a limit order to buy is placed at $95 for a stock priced at $100.
It will only be filled at the specified price or a more favorable price. If the stock price does not reach the specified price, it will not be filled.
Even if the specified price is reached, the order may not be executed if the order quantity is insufficient.Scenarios for using a Limit Order include when you want to buy or sell at a desired price.Example: "I want to Buy a stock that is $100 when it drops to $95". It can be good to specify a price based on key points on the Candlestick (e.g., moving averages).When wanting to avoid sudden market fluctuations.Even during sharp rises or falls, it is possible to avoid the risk of being All Filled at an unintended price. Since slippage does not occur like it does with a Market Order, calm trading becomes possible.When dealing with stocks with low liquidity...