Sets a maximum price; the trade only happens if the price hits that target or lower.
A is a formal instruction from an investor to a broker or trading platform to purchase a specific security, such as a stock, bond, or cryptocurrency. 🗝️ Core Components Asset Name: The specific ticker symbol (e.g., AAPL, BTC). Quantity: The number of shares or units to be bought. Order Type: The "how" and "when" of the purchase. Price: The maximum amount you are willing to pay. 📊 Common Types of Buy Orders
The order is sent to an exchange (like the NYSE) to find a seller. buy order definition
You enter the order details into your trading app.
A two-step order that triggers a limit order once a stop price is hit. 🔄 How the Process Works Sets a maximum price; the trade only happens
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Becomes a market order only once a specific "stop price" is reached. Quantity: The number of shares or units to be bought
Once a match is found, the trade is "filled" and the asset is added to your portfolio.
