MERJ Exchange offers different order types to help traders execute trades based on their preferred price and timing strategies. Below is an overview of the key order types and how they function.
Market Order
- Executes immediately at the best available price.
- Suitable for traders who prioritize speed over price control.
- Risk: Execution price may vary due to market fluctuations.
Limit Order
- Executes only at a specified price or better.
- Suitable for traders who want price control over immediate execution.
- Risk: May not execute if the price does not reach the specified level.
Stop Order
- Triggers a Market Order when the asset reaches a specified stop price.
- Used to limit losses or protect gains.
- Risk: Once triggered, the order executes at the best available market price, which may differ from the stop price.
Order Duration Options
- Fill or Kill (FOK): Executes in full immediately or cancels.
- Immediate or Cancel (IOC): Executes as much as possible immediately, canceling the rest.
- Good Until Date (GTD): Stays active until a specified date and time.
- Good Until Cancelled (GTC): Remains active until manually canceled.
Choosing the Right Order Type
- Use Market Orders when execution speed is key.
- Use Limit Orders to control the price of execution.
- Use Stop Orders to automate risk management.
- Select appropriate duration settings based on your trading strategy.