#OrderTypes101
In the world of crypto (digital currencies), there are several types of buy and sell orders used to execute trades according to the trader's strategy. Here are the most common types of orders (Orders)
1- Market Order
- Buy or sell immediately at the best available price in the market.
☑️ Fast execution – ❌ Does not guarantee the price
For example: You want to buy BTC now at any available price, so you place a Market Order and it executes immediately.
2- Limit Order
- Specify a certain price to buy or sell the currency. It executes only if the market reaches that price.
☑️ Price control – ❌ May not be executed
Example: You want to buy ETH at a price of $3,000, you place a limit buy order which will only execute if the price reaches $3,000 or lower.
3- Stop Order / Stop-Loss
- Used to protect profits or limit losses. It is activated when the price reaches a certain limit.
- Two types :-
• Stop-Loss: to sell when the price drops.
• Stop-Buy: to buy when the price rises (often used in breakout strategies).
Example: You have BTC and fear its drop, you set a Stop-Loss at $58,000. If the price reaches it, BTC is sold to minimize the loss.
4- Stop-Limit Order
- A combination of a Stop Order and a Limit Order. When the price reaches a certain limit (Stop), a buy or sell order is activated at a specified price (Limit).
☑️ More precise ❌ May not be fully executed
Example: You set the Stop at $2,100 and Limit at $2,090. If the price drops to $2,100, an attempt to sell is made through a *Trailing Stop Order*
