#OrderTypes101
Types of Trading Orders
When trading on exchanges or cryptocurrency platforms, there are several types of orders and various methods to help you execute your strategy accurately.
Understanding these orders is essential for managing risk and achieving your goals.
1. Market Order
• Immediate execution.
• You buy or sell at the best available price currently in the market.
• The price you see may not be the exact price you get due to market fluctuations.
2. Limit Order
(the order you specify for buying).
• You set the price at which you wish to buy or sell.
• The order will not be executed unless the market reaches the price you specified or better.
• Useful for getting a specific price but does not guarantee quick execution.
3. Stop Order
(Stop Loss Order)
• Converts to a market order when the price reaches a certain level.
• Used to protect profits or limit losses.
• May be executed at a lower quality price in volatile markets.
4. Stop-Limit Order
(Stop Loss Limit Order).
• A combination of a stop order and a limit order.
• You set the (activation price), and when it is reached, a limit order is placed at a specific price.
• Useful but may never be executed if the price is not hit accurately.
5. Trailing Stop Order
(Trailing Stop Loss Order).
• Moves automatically with the market.
• Allows for profit realization while reducing losses if (the trend reverses).