#OrderTypes101
When you buy or sell a cryptocurrency (or any asset), the platform asks you: How do you want the transaction to be executed? This is where the Order Type comes in.
1️⃣ Market Order – Market Order ⚡
🟢 This is the fastest type of order!
You tell the platform: "Buy/Sell for me now at the current market price!"
✅ Great when you want to enter or exit quickly
❌ The price might vary a bit (especially if there's high volatility)
Example: Want to buy Bitcoin quickly? Use Market Order.
2️⃣ Limit Order – Limit Order 🎯
You tell the platform: "I want to buy only when the price reaches this amount."
✅ You can control the price
❌ You can't guarantee it will execute, especially if the price doesn't reach what you set
Example: Bitcoin's price is currently $70,000, you say "I want to buy only when it drops to $68,000" – this is a Limit Order.
3️⃣ Stop Order – Stop Order 🚨
Means: "Let the trade execute if the price reaches a certain point."
📌 Often used for protection against loss, called "Stop Loss"
Example: You bought Ethereum at $3,500, and you say if it drops to $3,200, sell quickly so I don’t lose more.
4️⃣ Stop-Limit Order – Stop-Limit Order ⛔🎯
A combination of Stop and Limit:
If the price reaches a certain point (stop),
it executes a limit order at the price you set.
🔧 A bit complicated but useful in volatile markets.
5️⃣ OCO Order – One Cancels the Other 🧠
Means: "Place two orders for me, if one executes, the other is canceled."
🔥 Very smart! For example:
You say: "If the price rises, I want to sell for a profit"
or "If the price drops, I want to sell at a specified loss"
And as soon as one is fulfilled, the other is canceled.