#OrderTypes101 "Order types 101" in English translates to "Order Types 101". Generally, this refers to a basic guide or tutorial that explains the different types of orders used in the financial or cryptocurrency market. These orders can be used to buy or sell assets, such as stocks or cryptocurrencies, and each type has its own characteristics and rules. 

Order Types 101: What to learn?

When encountering the expression "Order Types 101", one can expect to learn about the following types of orders:

Market Order:

Allows buying or selling an asset immediately at the best available price in the market. 

Limit Order:

Allows specifying the maximum price (for buying) or minimum price (for selling) one is willing to trade, and the order is only executed if the market price reaches that value. 

Stop Order:

Is a conditional order that is only executed when the price of an asset reaches a predefined value (stop price). 

One Cancels the Other:

Is an order that consists of two limit or stop orders, where the execution of one automatically cancels the other. 

Protection Order:

Protects the execution of the order against market changes or against the execution of other orders with better prices in other markets. 

Why learn about order types?

Understanding the different types of orders is crucial for any investor or trader who wants to succeed in the market. Knowing how to use orders properly allows: 

Reduce risks:

Using limit and stop orders, it is possible to limit the amount one is willing to lose in case of asset depreciation. 

Increase opportunities:

With market orders, it is possible to ensure immediate execution of the trade, even if the price is less favorable. 

Improve investment strategy:

By choosing the most appropriate type of order for each situation, it is possible to optimize risk management and profit potential.