When you are a trader you would be placing orders in order to make the trade happen. Orders are placed either directly by the trader or by the brokers in cases of managed funds, or the mutual fund companies or by the trading bots like QProfit System. No matter who places the trade there are various types of orders that are placed.
1. Market order
2. Limit order
3. Stop order
4. Trailing stop order
This is the most common type of order and it also gets the name unrestricted order. It is the simplest types of orders where the trader places a request for the instrument to buy and the quantity of purchase. When the requested quantity of the assets is available the order would be executed at the price at that point in time. If the supply is less than the demand then the orders might take time to be executed.
The method that is popularly called take profit order is one where a minimum price would be set for the broker to sell or buy an asset. The method mainly focuses on increasing the winning chances.
These could be stop-loss orders or stop limit orders. The maximum price level target is fixed. Order placement here happens after the price of the asset reaches a value beyond the set target. Stop loss orders are automatically placed if the asset price falls below a certain specified level. For those traders who wish to balance a stop order stop limit orders are favorable choices.
Trailing stop order
This again could be trailing stop loss or trailing stop limit orders. Trailing stop orders are where the traders would not just set the target amount but also a trailing amount close to each target. Everyone wants to reduce the risks while also improving the chances of winning. For the trailing amount, there could be a fixed price or the trader can also choose to set a percentage value. When the stop loss or the stop limit events are triggered, there is the least possibility of making losses. In fact, trailing stop, orders are known to maximize the profit for the orders while also ensuring a good reduction in the losses.
For a trader to be successful it is important to understand the minor differences between each type of order and to know when to use each type. This would make the trader take better decisions.