Trade Bitcoin Trading

Bitcoin Orders

There are various types of Bitcoin orders which a trader can use to trade Bitcoin Crypto Currency.

To trade BTCUSD successfully a trader needs to learn about the different orders that 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

Market order is the most basic order that is used to trade Bitcoin. This order is used to buy/sell at the ruling bid or ask quote. This is the price that is currently appearing on your Bitcoin platform.

This order is used for buying and selling in accordance 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 ruling market price at the click of a button.

Entry Orders

These orders are used to open a new trade after the price has reached a price specified by 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 open a trade transaction at a specified price level. Because sometimes a trader may not have the time to monitor and watch 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 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/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 & at what price the BTCUSD trade position is to be opened.

These trading orders also are referred to as pending orders because they do not get executed immediately but are kept pending until the price of Bitcoin reaches 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 ruling price.

  • 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

The Entry Limit orders are set by Bitcoin traders when they expect the market to bounce back after reaching to the price level which the entry limit order was placed.

Buy Limit Order 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 open buy at the current price but wants to wait until Bitcoin hits a support level - and buy the Bitcoin once price hits this support zone. To do this a btc usd trader will set the Buy Limit at this Support Area that is below the price.

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

Sell Limit ==22==BTCUSDBTC/USD Order

Order specifying to open sell at a point that's above the prevailing 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 area. To do this a btc/usd trader will set the Sell Limit BTCUSD Order at this Resistance Level that's above the ruling price.

This order will be executed once the bitcoin 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 ruling price that is continuing to move downwards.

This Entry stop orders are set when a trader feels that the ruling 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 break out.

Buy Stop BTC USD Trading OrderSpecifies to buy Bitcoin at a point above the ruling price.

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

Sell Stop Bitcoin Trading OrderSpecifies to sell Bitcoin at a price point below current price.

When selling this order is executed as the market goes down & hits the sell stop entry level.

These sell stop and buy stop orders are also used to trade the market when there's a consolidation chart pattern. One will place a stop order to buy above the consolidation chart pattern & 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 BTCUSD ==22==CryptoCryptoCurrency online.

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