When trading cryptocurrencies on the Binance platform, understanding different order types helps optimize trading strategies and manage risks. Here are common order type explanations:

Limit Order

- Definition: Users pre-set their desired buy or sell price and trading quantity, and the system automatically executes the order when the market price reaches or exceeds the set price.

- Features: Allows precise control over trading price, avoiding slippage losses, but if the market price does not reach the set price, the order may not be executed. Some exchanges have validity options such as "Good 'Til Canceled (GTC)", "Immediate or Cancel (IOC)", and "Fill or Kill (FOK)".

- Applicable Scenarios: Suitable for traders who have a clear expectation of target prices, do not pursue immediate execution, and are sensitive to prices. For example, if predicting that the price of Bitcoin will rebound to $60,000, a buy limit order can be set at that price; if expecting Ethereum to rise to $5,000 and possibly retrace, a sell limit order can be set at that price.