An order is a request sent by the user to buy or sell currencies (for spots) or derivative contracts (for futures, options, and binary options).
- A market order simply tells the exchange to buy/sell specified quantity at the current market price. Market orders are filled fully/partially immediately. If the market cannot not provide enough liquidity, the unfilled part will be canceled immediately.
- A limit order tells the exchange to buy/sell specified quantity at a specified price. The order will remain valid in the exchange until the specified price is reached or it is canceled explicitly by the user or it automatically expires (for derivatives).
If an order gets filled, trades are generated.
For derivatives, a position records the quantity of derivative contracts the user has bought (a long position) or sold (a short position).