Trade Bitcoin Trading

Bitcoin Orders

Various types of Bitcoin orders are available for traders to utilize in Bitcoin cryptocurrency trading.

To trade BTCUSD successfully a trader needs to learn about the different orders which are used when it comes to trading Bitcoin. One must learn each type of trade order so that as they can use it for its correct purpose. 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're not familiar with.

Shown Below is a list of basic definitions of the orders that are commonly placed in the market when trading online.

Market Bitcoin Trade Order

A market order is the simplest type of trade used for Bitcoin, allowing buying or selling at the current bid or ask price displayed on your platform.

This order buys or sells at the current quoted price. It runs right away. When you decide to enter, click to trade at the market rate.

Entry Orders

These types of orders are employed to initiate a fresh trade subsequent to the asset's price attaining a level predefined by the trader.

These instructions are used to purchase or sell Bitcoin when its price reaches a particular goal. When the price is attained, then the starting order is done.

Entry orders start trades at set price points. Traders use them when they can't watch the market nonstop. Once Bitcoin hits the target level, the order runs on its own. It opens a buy or sell position automatically.

If a trader believes the market will move in a specific direction - such as a trend continuing or a support/resistance level for Bitcoin holding steady - they can use entry orders to dictate which trade to initiate and the price at which to open the BTCUSD position.

These types of trade instructions are also known as pending orders because they are not immediately processed but remain dormant until the price of Bitcoin aligns precisely with the specified target price.

There are two categories of entry orders, these are:

  • Entry Limit
  • Entry Stop

Entry Limit Orders

An instruction to purchase or sell Bitcoin at a predetermined price level. This specified price can be either lower than or higher than the prevailing market rate.

  • A limit that is below the current price is used for buying Bitcoin
  • A limit that is above the current price is used for selling Bitcoin

When Bitcoin traders anticipate the market to rebound after reaching the price level at which the entry limit order was placed, they set the entry limit orders.

Buy Limit Order specifying to buy Bitcoin at a level that is below the ruling market price.

A trader sets this order to buy bitcoin. They skip the current price. Instead, they wait for bitcoin to reach a support level. Once prices touch that support zone, the buy happens. To make it work, place the buy limit below the current price at that support spot.

This order will be executed once the Bitcoin price falls to the buy entry limit level.

Sell Limit BTC USD Order

Order specifying to open sell at a point that's above the current price.

A trader places this order to sell Bitcoin. They avoid selling at the current price. Instead, they wait for Bitcoin to reach a resistance level. Once it hits that area, they sell. A BTC/USD trader sets a Sell Limit order for BTCUSD at this resistance. That level sits above the current price.

This specific order is programmed to execute instantaneously once the Bitcoin's price ascends to the defined sell limit entry level.

Entry Stop Orders

You can place an order to buy Bitcoin above the current price if it's moving up, or sell below the current price if it's dropping.

Entry stop orders are placed when traders anticipate that the current trend will continue. For example, a BTCUSD trader might set this after a breakout, aiming to buy at a higher price or sell at a lower one following further price movement.

Buy Stop BTC USD Trading Order specifies the intention to purchase Bitcoin at a price above the current market rate.

When buying this order is executed as the market goes up and hits buy stop entry level.

A sell stop Bitcoin order specifies selling Bitcoin at a price lower than its current market rate.

For a sell order, it triggers as the market drops to the sell stop level.

These sell stop and buy stop orders are also implemented to take part in the market when the chart shows a period of price stability. A person will put a stop order to buy when the price goes above the stable chart pattern & also put another stop order to sell when price goes below the chart pattern.

In the next tutorials we shall look at how to set these Entry Limit and Entry Stop Orders when trading BTCUSD Currency online.

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