#OrderTypes101
1. 🟢 Market Order
Definition: An order to buy or sell immediately at the current market price.
✅ Use when: Speed is more important than price.
❌ Downside: May suffer from slippage if the market is volatile.
Example: “Buy 1 BTC now” → Filled instantly at the best available price.
---
2. 🔵 Limit Order
Definition: An order to buy or sell at a specific price or better.
✅ Use when: You want control over price.
❌ Downside: May not execute if the market doesn’t reach your limit price.
Example: “Buy 1 BTC at $65,000” → Order waits until price drops to $65,000.
---
3. 🔴 Stop-Loss Order
Definition: An order to sell (or buy) once a certain price is triggered, to limit losses.
✅ Use when: You want to exit a losing trade automatically.
❌ Downside: In highly volatile markets, it may execute at a worse price than expected.
Example: Bought ETH at $3,000 → Place stop-loss at $2,800.
---
4. 🟠 Stop-Limit Order
Definition: A combination of stop-loss and limit. When the stop price is hit, a limit order is placed.
✅ More control over execution price.
❌ May not fill if the price moves past your limit.
Example: Stop price = $2,800, limit = $2,790 → Sell ETH only between those prices.
---
5. 🟣 Take-Profit Order
Definition: Automatically closes a position in profit once the price reaches a specified level.
✅ Locks in profits.
❌ Like stop orders, may not always execute at the exact price.
Example: Bought BTC at $60,000 → Take profit at $70,000.
