#OrderTypes101

There are cryptocurrency order types that enable executing trades with more relevant specifications to help you minimize your losses.

Stop-Loss Order

Stop-loss order facilitates a trader to control their losses in a trade.

However, unlike limit orders, it is only activated when a specific ‘stop level’ is reached. If the market price of a cryptocurrency asset reaches a stop level, then the market order to buy or market order to sell will be executed automatically.

Stop-Limit Order

The stop-limit order is a bit similar to a stop-loss order. It allows a trader to limit their losses in an open position. To enable a stop-limit order, you have to specify a stop price and a limit price.

The stop price represents the price at which your limit order is triggered. The limit price represents the price at which your order is matched.

Take Profit Market Order

A take-profit market order allows a trader to lock in their profits in an open position of trade. The order is activated as a market order only when the take profit price is activated.

If the cryptocurrency asset price reaches the take profit price, then your order will become a market order and will be placed on the exchange’s order book.

Take Profit Limit Order

While the stop-limit order minimizes your losses, the take-profit limit order will allow you to lock your gains of trade. To enable a take-profit limit order, you have to specify a trigger price and a limit price.

The trigger price represents the price at which your limit order is triggered. The limit price represents the best price at which your order is matched.

Trailing Stop Orders

The trailing stop orders allow a trader to secure gains in the moving price of a cryptocurrency asset.