CRYPTO TRADING ORDER TYPES EXPLAINED
Here's a concise insight into common crypto trading order types:
* Market Order: Executes immediately at the best available current market price. Guarantees execution but not the price. Good for quick entry/exit when speed is paramount.
* Limit Order: Buys or sells at a specified price or better. It will only execute if the market reaches your set price. Guarantees price but not execution. Ideal for patiently entering/exiting at a desired level.
* Stop-Loss Order: An order to buy or sell once the price reaches a specified "stop price." For a sell stop-loss, it becomes a market order when the price falls to the stop price, aiming to limit potential losses. For a buy stop-loss, it becomes a market order when the price rises to the stop price, often used to limit losses on short positions.
* Take-Profit Order: Similar to a stop-loss, but designed to lock in gains. It's an order to sell when the price rises to a specified level (for a long position) or buy when the price falls to a specified level (for a short position), automatically closing the trade for a profit.
