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Price action trading is about reading what the market is doing, so you can deploy the right trading strategy to reap the maximum benefits. In simple words, price action is a trading technique in which a trader reads the market and makes subjective trading decisions based on the price movements, rather than relying on technical indicators or other factors.
A market order is a buy or sell order to be executed immediately at the current market prices. As long as there are willing sellers and buyers, market orders are filled. Market orders are used when certainty of execution is a priority over the price of execution. A market order is the simplest of the order types.
Traders can use Order Flow analysis to see the subsequent impact on the price of the market by these orders and therefore make predictions on the future price and direction of the market. Order flow trading is a type of short term trading strategy as it is used to enter the market accurately based on recent executed buy and sell orders. [2]
A limit order will not shift the market the way a market order might. The downsides to limit orders can be relatively modest: You may have to wait and wait for your price.
Market constitute an integral part of the price mechanism A market means a system or a set-up in which the buyers and sellers of the commodity are able to interact and communicate with each other and strike a deal, i.e., price and the quantity to be bought and sold.
An order matching system or simply matching system is an electronic system that matches buy and sell orders for a stock market, commodity market or other financial exchanges. The order matching system is the core of all electronic exchanges and are used to execute orders from participants in the exchange.
In securities trading, an order book contains the list of buy orders and the list of sell orders. For each entry it must keep among others, some means of identifying the party (even if this identification is obscured, as in a dark pool), the number of securities and the price that the buyer or seller are bidding/asking for the particular security.
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