#OrderTypes101

Order Types 101: Simple Guide to Binance Trading

If you’re new to Binance, understanding order types helps you buy and sell crypto the right way. Here’s a quick and easy guide:

1. Market Order

Buy or sell right now at the current price.

Use it when: You want to trade fast without waiting.

Example: Buy Bitcoin instantly at the price it’s trading now.

2. Limit Order

Set the price you want to buy or sell. Your order happens only if the price reaches your target.

Use it when: You want to buy cheaper or sell higher.

Example: Bitcoin is $30,000 now, but you want to buy at $29,000. You wait for the price to drop to $29,000.

3. Stop-Limit Order

Set a “stop” price that starts a limit order to buy or sell.

Use it when: You want to protect yourself from big losses.

Example: You sell Bitcoin if the price falls to $28,000, but you want to set the sale price at $27,900.

4. Stop-Market Order

Set a “stop” price that starts a market order (sells or buys immediately).

Use it when: You want to quickly sell or buy when the price hits a certain point.

Example: Sell Bitcoin immediately if it falls below $28,000.

5. OCO Order (One Cancels the Other)

Two orders combined: one limit order and one stop-limit order. When one order happens, the other is canceled.

Use it when: You want to sell at a high price or cut losses if the price drops.

Example: Sell Bitcoin if price goes up to $35,000 or down to $28,000 — whichever happens first.

Remember:

Market orders are for quick trades.

Limit orders help you buy/sell at your preferred price.

Stop orders protect your money.

OCO orders help manage both profit and risk automatically.

Disclaimer: This is for educational purposes only and is not financial advice. Always do your own research before trading cryptocurrencies. Trading involves risk, and you can lose money.