For every trader in the cryptocurrency market, understanding order types and how to use them correctly is the key to success and minimizing losses.
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1️⃣ Market Order
What is it?
An immediate buy or sell request at the best available market price.
Example:
If the price of Bitcoin is now $30,000 and you want to buy 1 BTC with a market order, the trade will be executed immediately at the best available price close to $30,000.
✅ Suitable for quick entry, but you may face price slippage in volatile markets.
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2️⃣ Limit Order
What is it?
You set a specific price at which you wish to buy or sell the currency.
Example:
If the price of Bitcoin is $30,000 and you want to buy at $29,500, you place a limit order at $29,500.
The order is executed only if the price reaches this level or better.
⏳ The order may wait for execution for a while if the desired price is not reached.
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3️⃣ Stop-Limit Order
What is it?
It consists of a "stop price" at which a "limit" order is triggered for selling or buying.
Example:
If you bought Bitcoin at $30,000 and want to protect yourself from significant losses, you place a stop-limit order with a stop price of $29,000 and a limit price of $28,900.
If the price drops to $29,000, a sell order will be triggered at $28,900 or better.
This order helps to automatically reduce losses.
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⚠️ Important Points:
Even with a market order, it is always advisable to set a stop-loss to manage risk.
Limit and Stop-Limit orders may not be executed if the price does not reach the specified levels.
In low liquidity markets, you may face difficulties executing limit orders.
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🧠 How to use orders practically?
For quick entry: use a market order.
To buy or sell at a specific price: use a limit order.
To protect your investment or secure profits: use a stop-limit order.
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💡 In trading, planning and risk management are the foundation of success. Learn to use these orders wisely to increase your chances of profit and reduce your losses!$WCT