#OrderTypes101 – Let’s break down the most common crypto and trading order types you need to know to trade like a pro:
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🟢 Market Order
Definition: Buys or sells immediately at the best available price.
Use Case: When speed matters more than price.
Pros: Fast execution.
Cons: May get a worse price due to slippage.
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🟡 Limit Order
Definition: Buys or sells at a specific price or better.
Use Case: When price matters more than speed.
Pros: You control the price.
Cons: Might not get filled if price doesn’t reach your limit.
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🔴 Stop Order / Stop-Loss
Definition: Converts to a market order once a set stop price is hit.
Use Case: To cut losses or protect profits.
Pros: Helps automate exits.
Cons: Executes at market, so price can be worse than expected.
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🟠 Stop-Limit Order
Definition: Becomes a limit order once a stop price is reached.
Use Case: More control over exit price than stop-loss.
Pros: Combines stop and limit for precision.
Cons: Might not fill during fast moves.
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🔵 Trailing Stop Order
Definition: Stop price trails the market by a fixed % or $.
Use Case: Lock in profits as price moves in your favor.
Pros: Rides trend while protecting downside.
Cons: Can trigger prematurely on volatility.
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🧠 Bonus: OCO (One Cancels the Other)
Definition: Pairs a limit order with a stop order — if one triggers, the other cancels.
Use Case: Automates trade management (profit + stop-loss).
Pros: Smart risk control.
Cons: Can be tricky on fast-moving assets.