#OrderTypes101

The most common order types in crypto trading:

1. Market Order

- Buys or sells immediately at the best available price.

- Fast execution, but price may vary due to slippage.

- Example: You buy Bitcoin instantly at the current market price.

2. Limit Order

- Sets a specific price to buy or sell.

- Only executes if the market reaches your price.

- Example: "Buy BTC at $90,000" – only fills if BTC drops to $90K.

3. Stop-Loss Order

- Triggers a market/limit order when a certain price is hit (to limit losses).

- Example: If BTC is at $95K, set a stop-loss at $93K to sell if the price drops.

4. Take-Profit Order

- Automatically sells when the price reaches a profit target.

- Example: "Sell BTC at $95K" to lock in gains.

5. Stop-Limit Order

- Combines stop-loss and limit orders.

- Triggers a limit order when the stop price is hit.

- Example: "If BTC drops to $95K, place a limit sell at $93.5K."

6. Trailing Stop Order

- Adjusts the stop price dynamically based on market movement.

- Locks in profits while allowing upside potential.

- Example: Set a 5% trailing stop – if BTC rises, the stop price follows.

7. **Iceberg Order

- Large order split into smaller hidden orders to avoid market impact.

- Used by institutional traders.

8. Fill-or-Kill (FOK) & Immediate-or-Cancel (IOC)

- FOK : Entire order must fill immediately or it cancels.

- IOC : Fills as much as possible, cancels the rest.

Which Order Type Should You Use?

- For quick trades : Market order.

- For precise entries/exits : Limit order.

- For risk management : Stop-loss & take-profit.

- For large trades : Iceberg orders.