#OrderTypes101: Your quick guide to understanding trading orders on Binance
Are you new to the trading world or looking to enhance your skills? 🤓 Let's take a quick look at the most common types of orders and how to use them to achieve your goals in the market.
✅ 1. Market Order
🔹 Example:
You wanted to buy BNB quickly. Using a market order, you buy it immediately at the best available price in the market. Ideal for instant execution, but it does not guarantee the price you will pay.
✅ 2. Limit Order
🔹 Example:
You want to buy BNB at a price of $500, while the current price is $520. You use a limit order at $500; the order will not be executed unless the price reaches it or lower.
✅ 3. Stop Loss Order
🔹 Example:
You bought BNB at a price of $500, but you want to protect yourself from losses if the price starts to drop. You place a stop loss order at $450, and the currency will be sold automatically if the price reaches this level.
✅ 4. Trailing Stop Order
🔹 Example:
You bought BNB at a price of $500, and it has now reached $600. You place a trailing stop order with a $50 difference. If the price rises to $650, the stop moves automatically to $600. When the price drops to $600, it sells, securing a profit.
✅ 5. Advanced Orders
🔹 Example:
Using an OCO (One Cancels the Other) order, you can set two orders together:
✔️ Sell order to take profit at $650
✔️ Stop loss order at $450
If one of the orders is executed, the other is automatically canceled.
