Crypto Trading Orders
Crypto trading isn’t about clicking buy and sell and hope for the best.
One needs a strategy and precision. At the heart of all this is crypto trading orders. They are the instructions you give the crypto exchange to excecute your buying and selling.
Market orders.
A market order is an instruction by a trader to buy or sell a cryptocurrency at the best available price, ensuring instant execution.
Ex: You want to buy 1 Bitcoin right now at the current market price.
Limit orders.
A crypto limit order is an instruction to buy or sell a cryptocurrency only at a specified price or better.
Ex: You want to buy 1 Bitcoin at $50,000 or lower.
Stop order.
A stop order is set to buy or sell a cryptocurrency at the market price once it has hit a specified stop price.
Ex: You own 1 Bitcoin, and you want to sell it if the price drops to $45,000.
Stop limit order.
A stop limit order combines a stop order and a limit order, allowing traders to specify both a stop price and a limit price for buying or selling.
Ex: You want to buy 1 Bitcoin when the price hits $60,000 but not above $60,100.
Take profit limit order.
A take profit limit order is a predefined order that automatically sells a cryptocurrency position when its price reaches a specified level or better. It's used to lock in profits by ensuring that the asset is sold when the market moves favorably.
Ex: You own 1 Bitcoin at $50,000 and want to set a take profit limit order at $60,000. When the market price reaches or exceeds $60,000, your Bitcoin will be sold at that price or higher.
Stop market order.
A stop market order is similar to a stop order, but when triggered, it becomes a market order and is executed at the best available market price.
Take profit market order.
A take profit market order is similar to a take profit limit order but is executed at the best available market price once the specified level is reached. It prioritizes execution speed over price precision.
All crypto trading order types have pros and cons, make sure to do your own research too.
