There are two main types of orders when trading financial derivatives: market orders and limit orders. A market order is an order to buy or sell an asset immediately at the market's current price, while a limit order is an order to be executed when a specific price or better is reached. Let's understand how these two types of orders work, and how to place market and limit orders in VSTAR.
What is a market order?
The market order will be executed as soon as possible at the current market price after the user places the order.
When placing a market order, you can select [Quantity] to buy or sell.
For example, if you want to buy or sell EURUSD with a certain amount, it is recommended to select [Quantity]. However, if you want to buy EUR with a certain amount of funds, then you open 1 lot of EURUSDT contract.
What is a limit order?
A limit order is an order you place with a specific limit price. It will only be executed when the market price reaches your limit price (or better). You can use a limit order to buy an asset at a lower price, or to sell it at a price higher than the current market price.