🔍 Deep Analysis: Fundamentals of Crypto Trading
📘 Topic 3: #OrderTypes101
Choosing the right order type can be the difference between a successful trade and an unexpected loss. Here I explain the most important ones 👇
🟢 Market Order:
Executes at the current price.
✅ Fast and useful in high volatility.
❌ Less control over the exact price.
📘 Limit Order:
Only executes at the price you choose or better.
✅ Perfect for buying cheap or selling high.
❌ May take time or not execute if the price doesn't reach.
🛑 Stop-Loss:
Automatically closes a trade if the price drops to a certain level.
✅ Key for managing risks.
❌ Poorly set, it may trigger on a false breakout.
🎯 Take-Profit:
Closes the trade when your profit target is reached.
✅ Secures profits before a reversal.
❌ May limit gains if the market continues to rise.
💡 My favorite? Limit order + stop-loss. It gives me entry control and security in case of an unexpected drop.
📈 Real example:
A few months ago, I placed a limit order to buy $ETH at $1,700 and added a stop-loss at $1,620. The price dropped, executed the purchase, bounced back strongly, and I achieved an excellent trade with low risk. Without the stop, it could have been disastrous.
👉 What type of order do you use the most and why?
Share your experience with #OrderTypes101 and earn points from the Binance app! 🚀📲