What is Order Level Trading – Various Types Of Trading Order

Various trade orders can be placed on trading exchanges for different financial assets, such as futures contracts and stocks. So, before you start to buy a stock and sell it, you will have to know the different types of orders. In the share market, the order represents the instruction given by the issuers of the order. This particular order or instruction is given to the dealer or broker to buy, sell, deliver, and receive the commodities or securities as a part of their commitment.

The order level represents the price at which traders enter or exit a market, enabling them to set a point at which they want to buy or sell.

What is order-level trading?
Order level trading is a trading way where a trader creates positions based on important price levels significant to his analysis. Using Fib. Levels or past low or high price levels (daily low, daily high, weekly low, weekly high, etc.) or indicators trader creates pending trades or live trades, puts projected stop loss and target.

But you may confuse which type of ORDER LEVEL TRADING is best for trading. Here is a full guide about that, and you will also get to know which type of order you should use on which trade.


If you want to start a trade or close it, you should know that order is simply an instruction. You can easily give the order to your particular provider. In this way, they can do the trading on behalf of yours. You can save your time, and you can reduce your loss and get a profit as well.

The order level is particularly referred to as the price or cost you want to make entry and exit in the share market. This will also enable you to set a point on which you want to make the buying or selling decision.


There are so many types of orders. These are such as follows:


In this order, you need to buy or sell the stock at the available price. This particular type of order will be implemented or effected immediately. But the price at which the market will be affected is not guaranteed. It is one of the simple types of trade orders. In this order type, the trader or investor does not have any such control over the price. This particular order type is very much popular among individual investors. They can buy or sell the stock without having any delay.


On the other hand, the limit order is a type of order where you can limit the price or the cost you are willing to buy or sell the stock. This type of order guarantees a price.


It is one of the most important types of orders. In this order, the trader can limit the losses by exiting the trade after reaching the specific price. By placing this particular type of order, you can reduce the number of losses and chances of high losses. While the stop cost is reached, then the stop order will become the market order.


Please read our article about what is a stop-limit order. Before placing your order, you need to know some important factors. These are such as follows:


Order time is considered as the length of duration. Your order will be open until or unless it expires and finishes. You can get a chance to choose the expiry date and time when you want to exit from the market. Here are two different types of order time or duration, such as GTD and GTC. In GTD, you need to choose the date and time when you want it to be canceled. On the other hand, in GTC, your order is active until you cancel it.


You should know that the market has gaps, and you may jump from one market price to another price without any such market activities. This can happen if you open a trade overnight or at the time of the weekend. In this case, you can close the trade with the best price available. But you may take the risk of losing money. This is known as slippage.


The traders place the stop order to limit the risk or protect their profits in the trading position. Traders use to place this type of order while they initiate the trades. here are some key factors that you need to know:

* This particular order is designed to reduce the number of investor losses in the trading market.
* This order effectively triggers the market order at the time of buying or selling.
* The main benefit is that you do not need to observe the stock performance daily.


You can do it in the same way, just like the stop order. This order is used for buying and selling the transaction. This type of order sets a limit on the price that the investors are willing to pay for the stock. Buyers can use this type of order to protect themselves from sudden changes or hikes in stock costs. Your broker may ask you some specific things if you want to invest in a trade with the help of a limit order. These are such as follows:

  • Type of the transaction either it is buying or selling.
  • Your number of shares.
  • Any security you have bought or sold.
  • Type of the order.
  • Price.

Now, you have known all the details about the trades and different types of orders as well. The type of order can be influenced by the investment approach yours. If you want to go with the long-term investment policy, you can go with the market order type. It is one of the cheapest order types. You can save your time and money by using the orders perfectly. By correctly using the order types, you can also save your efforts. Through this, you can maximize the chances of profits and reduce the amounts of losses as well. If you are not sure and feel confident, you can benefit from experienced traders and get their advice. In a volatile market, you need to make the right investment decision to make a profit and decrease the losses.



Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on: igor@forex.in.rs

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