BTCUSD Orders
There are different types of Bitcoin trading orders which a trader can use to trade Bitcoin Cryptocurrency.
To trade Bitcoin successfully a trader needs to learn about the different trading orders that are used when it comes to trading Bitcoin. A trader must learn each type of order so that they can use it for its correct purpose. The most important thing to remember is that you must understand the orders that you place when trading Bitcoin, and never place an order that you are not familiar with.
Shown Below is a list of basic definitions of the orders that are commonly placed in the market when trading Bitcoin Crypto online.
Market Bitcoin Order
Market order is the most basic order that is used to trade Bitcoin. This order is used to buy or sell at the current bid or ask quote. This is the price that is currently appearing on your Bitcoin trading platform.
This order is used for buying and selling according to the present price that is quoted. The execution of this order is instant - the minute that as a trader you want to buy or sell you can use this order to enter a trade by buying or selling at the current market price at the click of a button.
Entry Orders
These orders are used to open a new trade after the market price has reached a price specified by the trader.
These orders are used to buy or sell Bitcoin when the price of Bitcoin attains a certain price target - after which when this price is attained then the entry order gets executed.
These orders are used to enter a trade at a specified price level. Because sometimes a trader may not have the time to monitor the market all the time then a trader will set these entry orders so that when a particular Bitcoin price level is reached then the specified order will be executed automatically and a buy or a sell trade will be opened.
If a trader feels that the market will go in a particular direction - such as the current trend continues moving in the same direction or analyzes that the support or resistance level of Bitcoin will hold, then the trader has the option of using these entry orders to specify which trade is to be opened and at what price the trade is to be opened.
These trading orders are also known as pending orders because they do not get executed immediately but are kept pending until the price of Bitcoin attains a specified price.
There are two categories of entry orders, these are:
- Entry Limit
- Entry Stop
Entry Limit Orders
An order to buy or sell Bitcoin at a particular limit.The limit can either be below or above the current price.
- A limit that is below the current price is used for buying Bitcoin
- A limit that is above the current rice is used for selling Bitcoin
These Entry Limit orders are placed by Bitcoin traders when they expect the market to bounce back after reaching the price level at which the entry limit was placed.
Buy Limit OrderOrder specifying to buy Bitcoin at a level that is below the current market price.
This order is set by a trader who wants to buy Bitcoin, but does not want to buy at the current price but wants to wait until Bitcoin hits a support level - and buy the Bitcoin once price hits this support level. To do this a trader will set the Buy Limit Order at this Support Level that is below the price.
This order will be executed once the Bitcoin price falls to the buy entry limit level.
Sell Limit BTCUSD Order
Order specifying to sell at a level that is above the current market price.
This order is set by a trader who wants to sell Bitcoin, but does not want to sell at the current price but wants to wait until Bitcoin hits a resistance level - and sell the Bitcoin once price hits this resistance level. To do this a trader will set the Sell Limit Bitcoin Order at this Resistance Level that is above the current price.
This order will be executed once the bitcoin trading price rises to the sell entry limit level.
Entry Stop Orders
An order to buy Bitcoin above the current price that is continuing to move upwards or sell below the current price that is continuing to move downwards.
This Entry stop orders are set when a trader feels that the current trend is going to continue, but the BTCUSD trader wants to buy at a higher price maybe after a price breakout or sell at a lower price after a price breakout.
Buy Stop BTCUSD OrderSpecifies to buy Bitcoin at a level above the current market price.
When buying this order is executed as the market goes up & hits buy stop entry level.
Sell Stop Bitcoin OrderSpecifies to sell Bitcoin at a level below the current market price.
When selling this order is executed as the market goes down and hits the sell stop entry level.
These sell stop and buy stop orders are also used to trade the market when there is a consolidation chart pattern. A trader will place a stop order to buy above the consolidation chart pattern and also another stop order to sell below the consolidation chart pattern.
In the next tutorials we shall look at how to set these Entry Limit and Entry Stop Orders when trading Bitcoin online.
