Before entering any Futures trade, you must choose the Order Type.
The right choice can protect you… and the wrong choice can destroy you!
Let’s explain them simply with examples👇
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✅ First: Market Order
🔹 You enter the trade immediately at the best available price
🟢 Suitable for people who want to enter quickly
🔴 Its disadvantage: you might enter at a non-ideal price (slippage)
Example:
You want to buy BTC now, click Market → the trade is executed directly at market price.
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✅ Second: Limit Order
🔹 You set the price you want and wait for execution
🛡️ Suitable for people who are waiting for a precise entry point
🔴 Its disadvantage: the order may not be executed if the price does not reach
Example:
The current price of BTC is 65,000
You want to buy at 64,200 → you place a Limit order
If the price drops there, the order is executed automatically.
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✅ Third: Stop Order
🔹 Used to activate or close a trade at a certain price
🟢 It is divided into two types:
1. Stop Market:
The trade is executed at market price when the price reaches a certain point.
2. Stop Limit:
The trade is executed at a specific point at a determined price.
Practical example:
You are in a BTC buy trade at 65,000
You fear the price might drop, so you set:
– Stop Loss at 64,000
→ If the price drops to this level, the currency is sold directly.
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✅ When to use each type?
Order Type When do you use it?
Market Order If you are in a hurry to enter a trade directly
Limit Order If you have a very precise entry or exit point
Stop Order To protect yourself from losses or to activate a trade upon breach
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🔥 Tips for beginners:
🔸 Do not use Market Orders during strong news
🔸 Always use Stop Loss to protect your account
🔸 Limit Orders give you better control… but they require patience