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 set their desired buy or sell price and trading quantity in advance. The system automatically executes the order when the market price reaches or exceeds the set price.

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

- Applicable Scenarios: Suitable for traders with a clear expectation of target prices, who do not seek immediate execution and are sensitive to prices. For example, if predicting that Bitcoin's price will rebound after dropping to $60,000, one can set a buy limit order at that price; if expecting Ethereum to retrace after rising to $5,000, a sell limit order can be set at that level.