#OrderTypes101 Examples for Each Type

1. Market Order

• ⚡ You want to buy 1 ETH immediately → you pay whatever the current best price is.

• ✅ Pros: Fast

• ❌ Cons: Might get worse price in low liquidity markets (slippage)

2. Limit Order

• 🎯 You want to buy ETH at $3,000, but it’s trading at $3,200. You place a limit buy at $3,000.

• Order will only execute if price drops to $3,000 or lower.

3. Stop Order (Stop-Loss)

• 🔻 ETH is at $3,200, and you want to limit loss if it drops below $3,000. You set a stop at $2,950.

• Once $2,950 is hit, it sells at the next best available market price.

4. Stop-Limit Order

• 🧠 ETH hits $2,950 (stop price), place a limit sell order at $2,940.

• Useful if you want more control and avoid selling too low.

5. OCO Order

• 💡 You bought ETH at $3,000.

• You place an OCO:

• Take Profit: Sell at $3,500 (limit order)

• Stop Loss: Sell at $2,900 (stop-limit)

• Whichever gets triggered first cancels the other.

6. Trailing Stop

• 📈 ETH rises from $3,000 → $3,400.

• You set a trailing stop at 5% → the stop moves up with price.

• If ETH falls by 5% from its peak, the stop triggers.

🧠 Pro Tips

• Market = fast but expensive

• Limit = slow but precise

• Always use stop-losses in volatile markets

• Combine OCO + trailing stops for smart risk management