#OrderTypes101 Understanding the types of orders is essential in cryptocurrency trading. Here is the analysis:
1. Market Order:
Executed immediately at the current market price.
✅ I use this order when I want to enter or exit a trade quickly, especially in highly liquid markets.
2. Limit Order:
Executed only at a specific price or better.
✅ Great for setting buy or sell prices in advance. I use this order when I don't want to chase the market.
3. Stop Loss Order:
Automatically sells a position if the price drops to a certain level.
✅ Important for risk management. I always set a stop loss order to protect capital in high-volatility trades.
4. Take Profit Order:
Closes a trade when the price reaches a set target.