A market order is the choice of investors when speed is more important than cost. A market order should be used when an instant buy at the nearest available price is essential.
This type of order has the highest probability of being executed; however, due to the increased possibility of price changes, the use of such charges is always a significant risk. For example, if the value of a particular currency is $1 when the order is placed, and the price quickly rises to $2, then that order would work anyway, regardless of the price range, since its purpose is to buy instantly at the first opportunity.
A limit order is the choice of investors who have more time to spend on buying and for whom price is more important. This type of order is used so that the investor specifies the purchase price, and only then does it work or buy at a better price. The disadvantage of a limit order is that due to a substantial price change in the market, it may take a long time to be executed.
In some cases, with a significant difference in the pricing policy in the market, the order may not work. An example of using such an order would be when a particular currency is worth one dollar, and the investor has set a selling price of one and a half dollars. In this case, the money can either reach a value of one and a half dollars and the order will work, or fall below one dollar, and the investor will not sell the currency.
The third type of order is called stop loss and is to secure the investor’s money and prevent losses. It can be presented as a limit order and as a market order. A stop order helps save an investor’s funds during a market crash. For example, to go into losses, an investor sets a minimum selling price, which he bought the currency. Thus, a market order is used to buy or sell immediately, a limit order is used to buy or sell long, and a stop-loss order is used to save the investor’s money.