#OrderTypes101

Understanding Market, Limit, Stop-Loss, and Take-Profit Orders

Market, Limit, Stop-Loss, and Take-Profit orders are essential tools in trading. A Market order buys or sells instantly at the best available price—great for speed but not for precision. A Limit order lets you set your desired price, executing only when the market reaches that level. Stop-Loss orders automatically sell an asset if it drops to a certain price, minimizing losses. Meanwhile, Take-Profit orders lock in gains by selling when a set target is hit.

I use Limit orders when entering a trade to control my entry point and combine them with Stop-Loss and Take-Profit to manage risk and rewards.

My go-to is the Limit order because it gives me price control, especially in volatile markets. I once used a Market order during a fast-moving altcoin rally—my entry price was much higher than expected due to slippage. Since then, I’ve preferred Limit orders to avoid such surprises. Choosing the right order type can mean the difference between profit and loss.