diff --git a/DeFi/day-trading/limit-orders.md b/DeFi/day-trading/limit-orders.md deleted file mode 100644 index 36d5528..0000000 --- a/DeFi/day-trading/limit-orders.md +++ /dev/null @@ -1,9 +0,0 @@ -## Limit orders - -
- -* Limit orders ensure a user is getting the price they want when buying or selling an asset, without worrying about slipage. -* When a limit order is placed, the price at which the order is placed is known as the limit order. -* The limit price is the worst price the trader is willing to execute the trade at, the order will only be filled at this price or better. -* Limit orders can serve as an effective method od captureing the volatility of an asset. -* Orders can be set at prices significantly higher or lower than the current price, while being monitored and adjusted. diff --git a/DeFi/day-trading/orders-types.md b/DeFi/day-trading/orders-types.md new file mode 100644 index 0000000..0436c3e --- /dev/null +++ b/DeFi/day-trading/orders-types.md @@ -0,0 +1,92 @@ +# Order types + + +#### tl;dr + +* You can "take " or "make" prices with market and limit orders. +* The spread prevents us from making free money without risk. +* Stop order can limit our risk. + +
+ +### Order book + + * open market for crypto pairs + * red: sellers; green: buyers + +
+ +### Spread + + * the difference between the best bid and best offer + * you want a tight spread + +
+ +### Market order + + * choose the amount you trade + * don't choose the price + * can trade quickly, easy to use + * can easily pay too much for crypto + * always on the wrong side of the spread + * already in a loss + +
+ + +### Limit order + + * choose the amount you trade AND the price + * get a better deal + * can't guarantee we trade the whole order + * must wait for sellers to come + * maker fees are lower + * Limit orders ensure a user is getting the price they want when buying or selling an asset, without worrying about slipage. +* When a limit order is placed, the price at which the order is placed is known as the limit order. +* The limit price is the worst price the trader is willing to execute the trade at, the order will only be filled at this price or better. +* Limit orders can serve as an effective method od captureing the volatility of an asset. +* Orders can be set at prices significantly higher or lower than the current price, while being monitored and adjusted. + +
+ +### Stop market order + + * choose the amount you trade + * don't choose the price + * choose at what price to place your market order + * some trading strategies will need this order + * fast trading for buy/sell breakouts + * "if price gets to X, sell with a market order" + +
+ +### Stop limit order + + * choose the amount you trade AND the price + * choose at what price to place your limit order + * add on to an winning trade or specific price level (TA) + +
+ +### Stop loss order + +* a version of a stop limit order +* stops your losses +* important for day trading, to mitigate trading risks +* choose the price level with TA +* must be below the current trading price + +
+ +### Take profit order + +* a version of a stop limit order +* trades your position with a profit +* important for day trading, to automate trading +* choose the price level with TA +* must be above the current trading price + + +
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