## basics on trading, illustrated on gmx

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#### price chart


* the current price is the price of the most recent trade.
* it varies on whether that trade was a buy or a sell.
* high volume means the price movement is more reliable (consensus of a large number of market participants).
* candlesitck chart showing open/start (O), high (h), low (low), anc close/end (c) prices for a given time window.

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<img width="400" src="https://user-images.githubusercontent.com/1130416/227733463-d0dff53f-9a5f-45f3-80a4-9d9ab0d9201e.png">
<img width="400" src="https://user-images.githubusercontent.com/1130416/227733575-90550afd-99f2-45cc-b6aa-fd4457910cc5.png">

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#### order book

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* the order book is made of two sides, asks (sell, offers) and bids (buy).
* the best ask (the lowest price someone is willing to sell ) > the best bid (the highest price someone is willing to buy).
* the difference between the best ask and the best bid is called spread.
* **market order**: best price possible, right now. it takes liquidity from the market and usually has higher fees.
* **limit order (passive order)**: specify the price and qty you are willing to buy or sell at, and then wait for the match.
* **stop orders**: allow you to set a maximum price for your market orders.

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