#OrderTypes101 In cryptocurrency trading, "order types" are instructions you give to an exchange about how you want to buy or sell a digital asset. Understanding these is crucial for managing your trades, controlling risk, and executing your strategy effectively.
Here are the most common order types you'll encounter:
1. Market Order
A market order is the simplest and most immediate type of order. You instruct the exchange to buy or sell a specified amount of cryptocurrency at the best available current market price.
* How it works: Your order is filled instantly by matching with existing limit orders on the order book.