In the stock market, investors often refer to the concept of "orders". So, what exactly does it mean to have a stock holding order, and what does it play in stock trading?slotrushWhat about the role? Next, let's discuss the mystery of the order in depth.
Definition and composition of order
A consignment refers to that in stock trading, the seller entrusts a securities company to sell a certain number of stocks at a certain price or better, while the buyer buys a certain number of stocks at a certain price or better. In short, an order is a form of order that an investor entrusts a securities company to buy and sell stocks at a specified price and quantity.
The difference between an order receipt and a market order
The importance of supporting orders
In the stock market, orders have the following important roles:
Price protection: By setting the price of the order, investors can achieve price protection and prevent losses caused by excessive market fluctuations. Trading autonomy: Orders holding allows investors to flexibly set buying and selling prices based on their own judgments and needs, improving trading autonomy. Reduce slip risk: Slip point refers to the difference between the actual transaction price and the order price. Orders can effectively reduce the risk of slippage caused by market fluctuations. Increase transaction rate: By setting orders, investors can increase the probability of trading within a specific price range, thereby improving investment efficiency.Application of order holding strategy
In actual stock trading, investors can use the following order holding strategies according to different situations:
Stop loss orders: When the stock price falls, sell the stock in time by setting a stop loss order to avoid further expansion of losses. Take profit orders: When the stock price rises, set up a take profit order to lock in the income and avoid missing the opportunity to sell due to greed. Batch orders: Divide funds into several parts and set orders according to different prices to diversify risks and achieve stable investment. Tracking stop orders: Gradually increase stop loss prices as the stock price rises to protect existing gains.Through the above introduction, I believe you have a deeper understanding of orders in the stock market. In actual stock trading, the reasonable use of the order-holding strategy can effectively improve the safety and return rate of investment.
