Hashtag #OrderTypes101 usually refers to a guide or simplified explanation of the different types of trading orders, whether in traditional markets (such as stocks) or in cryptocurrency markets. Hereโs a summary of the main types of trading orders that this type of content might include:
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๐ Main Types of Trading Orders (Order Types)
1. Market Order
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Executes immediately at the best available price.
๐ Used when you want to enter or exit a trade quickly.
โ ๏ธ Does not guarantee the price, but guarantees execution.
2. Limit Order
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Executes only if the price reaches a certain level you specify.
๐ Useful for getting a better price.
โ ๏ธ May never be executed if the price does not reach the target.
3. Stop Order
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Converts to a market order when reaching a certain price (stop price).
๐ Used to stop loss or enter when breaking a price level.
โ ๏ธ May be executed at a lower/higher price than desired due to market volatility.
4. Stop-Limit Order
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Combines a stop order and a limit order.
๐ Activates at a certain price, but executes only at a specified price or better.
โ ๏ธ May not be executed if the price moves quickly.
5. Trailing Stop Order
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Moves with the price in your favor and protects profits.
๐ Used for automatic exit when the trend reverses after making a profit.
โ ๏ธ Requires continuous price movement to be effective.
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