#ordertypes101

Order types are instructions traders give to brokers on how to enter or exit trades. The most common is the market order, which executes immediately at the current price. A limit order sets a specific price to buy or sell, executing only if that price is reached. A stop order becomes a market order once a set price is triggered, useful for cutting losses or entering trends. Stop-limit orders combine stop and limit features, adding more control. Understanding order types helps manage risk, improve execution strategy, and avoid unwanted slippage, especially in fast-moving or low-liquidity markets.

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