#OrderTypes101

🔍 #OrderTypes101: The Essentials

1. Market Order

“Buy/Sell immediately at the best available price.”

• ✅ Fast execution

• ❌ Price may change slightly (slippage)

Example: You place a market buy for BTC — it fills instantly at the current asking price.

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2. Limit Order

“Buy/Sell at a specific price or better.”

• ✅ More control over price

• ❌ May not get filled if the market never hits your price

Example: You set a limit buy for ETH at $3,000 — it only executes if ETH hits $3,000.

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3. Stop Order / Stop-Loss

“Trigger a market order when a specific price is hit.”

• ✅ Risk management

• ❌ Executes like a market order (possible slippage)

Example: You own BTC at $40,000 and set a stop-loss at $38,000 — if BTC drops, it sells to cut losses.

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4. Stop-Limit Order

“Trigger a limit order at a specific price once a stop price is reached.”

• ✅ More precision than a stop-loss

• ❌ Might not fill if price moves fast

Example: Stop at $38,000, limit at $37,900. Only sells if BTC hits $38,000, but won’t go lower than $37,900.

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5. Trailing Stop

“A dynamic stop-loss that follows the price by a fixed percentage or amount.”

• ✅ Locks in gains while limiting loss

• ❌ Can trigger during temporary dips

Example: You buy ETH at $2,000 with a trailing stop of 5%. If ETH hits $2,500, your stop is now at $2,375.