#OrderTypes101 Order types in Crypto trading
There are some order types you need to concentrate when book a trade in crypto. Let's find out:
🔰 Order Types 101 in Crypto Trading
1. 🟢 Market Order
> Buy or sell immediately at the best available price.
Use When: You want to enter or exit quickly, and price isn’t your main concern.
Pros: Fast execution.
Cons: You may get a worse price in volatile markets (called slippage).
Example: You place a market order to buy BTC. It buys instantly at the current best ask price.
2. 🟡 Limit Order
> Buy or sell at a specific price or better. It only executes when the market hits your price.
Use When: You want a better price and are okay waiting.
Pros: More control over price.
Cons: It might not execute if price doesn’t reach your limit.
Example: You set a limit buy order for BTC at $60,000. If BTC drops to that price, it buys automatically.
3. 🔴 Stop Order (Stop-Loss or Stop-Market)
> Triggers a market order when a specific price is reached — commonly used to prevent losses.
Use When: You want to protect your investment if price drops.
Pros: Automated loss protection.
Cons: It sells at market price once triggered, which might be lower than expected in a fast drop.
Example: You hold BTC at $65,000 and set a stop-loss at $62,000. If it hits that price, it sells to avoid further loss.
4. 🟠 Stop-Limit Order
> A combination of a stop order and a limit order. Once your stop price is hit, it places a limit order instead of a market order.
Use When: You want stop protection but don’t want to sell at a bad price.
Pros: More control than stop-market.
Cons: Might not get filled if market moves too fast.
Example: Stop = $62,000, Limit = $61,800. If BTC hits $62K, it places a sell order at $61.8K — but it won’t sell if it falls too fast below that.
5. ⚪ Take-Profit Order
> Automatically locks in profit when your crypto hits a target price.
Use When: You want to sell at a higher price to realize profit.
Often used with: Stop-loss orders for a full trading plan.
6. 🟣 Trailing Stop Order
> Moves the stop price with the market, locking in profits as price rises.
Use When: You want to ride the trend but secure gains if it reverses.
Pros: Automatically adjusts.
Cons: Can be triggered by short-term dips.
Example: BTC is at $65,000. You set a trailing stop at $1,000 below market. If it rises to $67,000, your stop moves to $66,000.
Good Luck ❤️ 🤞