【Predy v6】Basic Order Type
We will update Predy v6 to v6.1 in this week!
Mainly, we’ll add some order types. Following to this update, open orders can be possibly deleted due to the technical changes. but no worries, of course, your positions will never be closed. Please watch out our X (Twitter) and Discord to catch the announcement!
Well, before the update, we talk about current order types today.
Currently, Predy v6 has 2 basic types of order.
Market order
Limit order
Let’s see how you can use those 2 types of order effectively.
Market order
Market order is an order method that the order price (rate) is not set in advance and the order is placed at the current market price. This is the order method used when you want to entry immediately. So, it’s fitting for short span trading. But you have to (at least should) keep your eyes on the chart while you have positions.
Limit order (stop order)
Limit order is an order method that the order is automatically placed when the specified rate is reached. It is also possible to place an order to close a position you have.
So, there are some ways to use a Limit order.
1.New Entry
If the current price is 2,000 USDC to the ETH and you want to buy when the price falls to 1,990 USDC, you can place a limit order to buy when the price falls to 1,990 USDC and the order will be triggered when the price hits 1,999 USDC.
2.Exit (fixing profit)
If you hold a long position at 1,990 USDC and now want to sell when the price rises to 2,010 USDC, you can place a limit order to sell when the price rises to 2,010 USDC, which will be settled when the price reaches 2,010 USDC.
3.Exit (cutting loss)
If you hold a long position at 2,000 USDC and want to cut your losses when the price falls to 1,990 USDC, you can place a stop loss order at 1,990 USDC which will cut your losses when the price reaches 1,990 USDC.
Stop orders are used to cut losses on new entries and closings aimed at price movements after a breakthrough of resistance or support levels. Especially for those who find it difficult to cut losses on their own judgement, stop loss orders for exit can be used to automatically cut losses and manage risk efficiently.
We will add some more variety of order type at next updates!!
The next step is OCO order.
An OCO order, or “One Cancels the Other” order, is a type of conditional order used in financial markets, particularly in trading stocks, currencies, or other securities.
This type of order allows an investor to place two orders simultaneously, with one order being contingent on the execution of the other. The key concept is that if one part of the order is filled, the other part is automatically cancelled.
Here’s a breakdown of how an OCO order works:
1. Entry
You can make two orders simultaneously,
Buy Stop Order: This is an order to buy at a price above the current market price. It is typically used when an investor expects the price to rise.
Sell Stop Order: This is an order to sell at a price below the current market price. It is usually used when an investor anticipates a price fall.
2. Execution Scenario
If the price rises to the level specified in the Buy Stop Order, it triggers the order, and a buy position is opened.
If the price falls to the level specified in the Sell Stop Order, it triggers the order, and a sell position is opened.
3. Cancellation Rule
Once either the Buy Stop Order or the Sell Stop Order is executed and a position is opened, the other pending order (either the Buy or Sell) is automatically cancelled. This helps manage risk and avoid contradictory positions.
The OCO order is often used by traders to manage their trades and set predefined entry and exit points. It allows for a more automated approach to trading and helps investors stick to their predetermined strategies, as the execution of one order automatically negates the other.
It’s important for traders to carefully consider market conditions and set appropriate price levels for their OCO orders to align with their risk tolerance and trading objectives.
