Hello everyone,
I am using Coinbase Pro because I want to start trading. I've watched YouTube videos that explain to me the difference between a Stop order, Limit order, and maker/taker fees. I don't get it? I've read the explanation on Coinbase Pro about the differences and I still don't get it. I must be stupid.
These definitions are pretty specific:
Limit order: A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.
Market order: A market order is an order to buy or sell a stock at the best available price. Generally, this type of order will be executed immediately.
Stop order: A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order.
Maker fees apply to limit orders because you are "making" (adding) liquidity to the order book. Taker fees apply to market orders because you are "taking" liquidity from the order book.