#OrderTypes101 On Binance, understanding different order types is essential for effective trading. Here's a quick "Order Types 101" guide:

🛒 Basic Order Types on Binance

1. Market Order

What it is: An order to buy or sell immediately at the best available price.

When to use: When you want to enter/exit a trade quickly.

Pros: Fast execution.

Cons: You may get slippage if the market is volatile.

2. Limit Order

What it is: An order to buy or sell at a specific price (or better).

When to use: When you want more control over the price.

Pros: No slippage.

Cons: May not get filled if the market doesn’t reach your price.

3. Stop-Limit Order

What it is: A two-part order that becomes a limit order when the price hits a set stop.

When to use: To set entry or exit conditions at specific levels.

Example:

Stop = $40,000

Limit = $39,800

→ If price hits $40,000, a sell limit order is placed at $39,800.

Note: Might not execute in fast markets if price skips over your limit.

4. Stop-Market Order

What it is: Becomes a market order once a trigger price (stop) is hit.

When to use: For fast exits (like a stop-loss).

Pros: Ensures execution.

Cons: Less price control.

📈 Advanced Order Types

5. Trailing Stop Order

What it is: A dynamic stop order that follows the price by a set percentage or amount.

When to use: To lock in profits as the market moves in your favor.

Example: If price rises to $50,000 and you have a 5% trailing stop, your stop is at $47,500. If price keeps rising, the stop rises too.

6. OCO Order (One Cancels the Other)

What it is: A pair of orders – a limit order and a stop-limit order. When one fills, the other is canceled.

When to use: To set a target take-profit and a stop-loss at the same time.

⏱️ Time in Force (TIF) Options

Used with limit orders to define how long the order stays active:

GTC (Good 'Til Canceled): Active until filled or canceled.

IOC (Immediate or Cancel): Fills all/part immediately, cancels the rest.