#OrderTypes101

📘 Basic Order Types in Crypto

1. 🟢 Market Order

• What it does: Buys or sells immediately at the best available price.

• Use case: You want a quick trade and don’t mind slippage.

• Pros: Fast execution

• Cons: Price may not be ideal (especially in low liquidity markets)

Example: “Buy 1 BTC at the best price available now.”

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2. 🟡 Limit Order

• What it does: Buys or sells only at a specific price or better.

• Use case: You want control over the price and can wait.

• Pros: More precise

• Cons: Order may not fill if the market doesn’t reach your price

Example: “Sell 1 BTC at $70,000 or higher.”

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3. 🔴 Stop Order (a.k.a. Stop-Loss)

• What it does: Becomes a market order once a set price (stop price) is reached.

• Use case: Minimize losses or lock in profits.

• Pros: Helps automate risk control

• Cons: May execute at a worse price in volatile markets

Example: “Sell BTC if it drops to $60,000.”

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4. 🟠 Stop-Limit Order

• What it does: Becomes a limit order once a stop price is triggered.

• Use case: You want to avoid slippage after a trigger price.

• Pros: Combines stop control with price control

• Cons: Might not fill if price moves too fast

Example: “If BTC hits $61,000 (stop), place a sell order at $60,900.”

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5. 🟣 Take-Profit Order

• What it does: Automatically sells when a profit target is reached.

• Use case: Lock in gains automatically.

• Pros: Removes emotion from trading

• Cons: Can miss out on further upside

Example: “Sell if BTC reaches $75,000.”