#OrderTypes101 OrderTypes101

In crypto trading, order types determine how your buy or sell instructions are executed on an exchange. Here’s a brief overview of common order types:

Market Order: Buys or sells immediately at the current market price. Fast but may face slippage (price changes during execution).

Limit Order: Sets a specific price at which to buy or sell. Executes only when the market reaches your price, offering control but no guarantee of execution.

Stop Order (Stop-Loss): Triggers a market order when the price hits a set level, used to limit losses or protect profits.

Stop-Limit Order: Combines stop and limit orders. Triggers a limit order when a price is reached, giving more control but may not execute if the market moves too fast.

Take-Profit Order: A limit order that automatically sells when the price reaches a target to lock in profits.

Trailing Stop Order: A stop order that adjusts with the market price, trailing by a set distance to secure profits while allowing upside potential.

OCO (One-Cancels-the-Other): Pairs two orders (e.g., stop-loss and take-profit). When one executes, the other cancels automatically.