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Buy Order Meaning

A buy order is an instruction placed on a trading venue to purchase a specific amount of an asset under defined conditions. Buy orders represent demand and form one side of an exchange’s order book.

Common types of buy orders include:

When a buy order matches a corresponding sell order, a trade is executed by the exchange’s matching engine. Buy orders play a central role in price discovery by signaling how much buyers are willing to pay at different price levels.

The choice of order type depends on execution priority, price control, and trading strategy.

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