Type of orders
Market order
This is an order traders set to buy or sell a CFD at the present market price. The buyer will pay the price on the offer and the seller will accept the price on the bid.
Stop loss order
A stop loss order informs the CFD provider at what point the trader wants to close the trade in order to prevent unwelcoming loss. The electronic trading platforms allow traders to manually set their stop loss orders for their own benefit. The stop loss order is one of the most important trade management tools that traders are advised to use when placing trade.
Stop entry order
A stop entry order allows traders to open a trade when a specific level is reached. The way it works is; the trader can place a stop entry automatically through the trading platform and would be as follows: ‘Sell Share X/Share Y 300 at 4552 on Stop.’
Limit order
A limit order is an order where traders clarify the price to buy or sell. It is a very useful tool for traders that help them capture or protect the profit in a specific trade. For instance, the price of Yahoo is the price of $15.35 and the trader is long at $14.35. If the trader’s objective is to close this position when the price reaches $16.00, the trader can place a limit order at that price.
