#OrderTypes101
# **#OrderTypes101: Basic Guide to Orders in Crypto Trading**
To operate efficiently in the crypto market, understanding the **types of orders** is essential. Each has a strategic function and can be used in different scenarios.
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## **1️⃣ Basic Order Types**
### **🔹 Market Order**
- **What it does:** Buys/sells immediately at the best available price.
- **When to use:** When you want quick execution (but may suffer *slippage* in volatile markets).
### **🔹 Limit Order**
- **What it does:** Sets a specific price to buy or sell. Only executes if the market reaches that value.
- **When to use:** To enter/exit at exact levels (e.g., buy BTC at $60k or sell at $70k).
### **🔹 Stop-Loss**
- **What it does:** Automatically sells if the price drops to a predefined level (limiting losses).
- **When to use:** To protect your capital in risky trades.
### **🔹 Take-Profit**
- **What it does:** Closes the position automatically when the price reaches a profit target.
- **When to use:** To secure gains without needing to monitor the market 24/7.
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## **2️⃣ Advanced Orders**
### **🔸 Stop-Limit**
- Combines **Stop + Limit**: When the price hits the *stop*, a *limit order* is triggered.
- **Example:** If BTC is at $65k, you can set:
- **Stop:** $63k (triggers the order)
- **Limit:** $62.8k (minimum selling price)
### **🔸 Trailing Stop**
- Automatically adjusts the *stop-loss* as the price rises, locking in profits.
- **Example:** If BTC rises from $60k to $70k, the stop "follows" the high (e.g., 5% below the peak).
### **🔸 OCO (One-Cancels-the-Other)**
- Combines two orders (e.g., *take-profit* + *stop-loss*). If one executes, the other is canceled.
- **Useful for:** Automated strategies without manual intervention.
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*(Disclaimer: Trading involves risks. Never trade with capital you cannot afford to lose.