#OrderTypes101

🧠 Crypto Order Types 101

When trading cryptocurrencies on an exchange, you need to place orders to buy or sell. These orders tell the exchange what you want to do and under what conditions. Here's a breakdown of the most common order types:

1. Market Order

What it is: Buy or sell immediately at the current market price.

Use when: You want to execute quickly and don’t mind a little price slippage.

Pros: Fast execution.

Cons: You may get a worse price during volatility.

> 🔹 Example: “Buy 1 BTC right now” — it will be filled at the best available price.

2. Limit Order

What it is: Buy or sell at a specific price or better.

Use when: You want price control and don’t need immediate execution.

Pros: More predictable pricing.

> 🔹 Example: “Sell 1 BTC at $70,000” — only fills if price hits $70K or higher.

3. Stop Order (aka Stop-Loss)

What it is: An order that activates a market or limit order once a specific price is hit.

Use when: You want to limit losses or lock in profits.

Types:

Stop Market: Turns into a market order when triggered.

Stop Limit: Turns into a limit order when triggered.

> 🔹 Example: “Sell BTC if it drops to $60,000” to prevent bigger losses.

4. Take-Profit Order

What it is: Like a stop order, but aimed at locking in profits.

Often used with stop-loss to automate both ends of a trade.

> 🔹 Example: “Sell BTC at $75,000 to take profits if the price pumps.”

5. OCO Order (One Cancels the Other)

What it is: A combo of a limit and a stop order. When one executes, the other is canceled.

Use when: You want to set both a take-profit and stop-loss at once.

> 🔹 Example: Set a limit sell at $75K and stop at $60K — only one will trigger.

6. Trailing Stop Order

What it is: A dynamic stop-loss that follows the price as it moves in your favor.

Use when: You want to let profits run but protect against reversals.

> 🔹 Example: Sell if BTC falls 5% from its highest price since you entered.