#OrderTypes101 Your Quick Guide to Understanding Trading Orders on Binance

Are you new to the trading world or looking to enhance your skills? Let's take a quick look at the most common types of orders.

1. Market Order

Example:

You wanted to buy BNB quickly. Using a market order, you buy it immediately at the best available price in the market. Ideal for immediate execution, but it does not guarantee the price you will pay.

2. Limit Order

Example:

You want to buy BNB at $500, while the current price is $520. You use a limit order at $500; the order will not be executed unless the price reaches it or lower.

3. Stop Loss Order

Example:

You bought BNB at $500, but you want to protect yourself from losses if the price starts to drop. You place a stop loss order at $450, and the coin will be sold automatically if the price reaches this level.

4. Trailing Stop Order

Example:

You bought BNB at $500, and it has now reached $600. You place a trailing stop order with a $50 distance. If the price rises to $650, the stop moves automatically to $600. And when the price drops to $600, it sells, realizing profits.

5. Advanced Orders Example:

Using an OCO order, you can set two orders together:

✔️ A sell order to take profit at $650

✔️ A stop loss order at $450

If one of the orders is executed, the other is automatically canceled.