#OrderTypes101 #OrderTypes101 Your Brief 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 instant execution, but it doesn't guarantee the price you'll 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 only be executed if the price reaches that level 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 set 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 set a trailing stop order with a $50 gap. If the price rises to $650, the stop automatically moves to $600. When the price drops to $600, it gets sold, 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.