When trading cryptocurrency on the Binance platform, understanding different order types helps optimize trading strategies and manage risks. Here are common order type analyses:

Limit Order

- Definition: Users preset their desired buy or sell prices and trading quantities, and the system automatically executes when the market price reaches or exceeds the set price.

- Features: Allows precise control over trading prices, avoiding slippage losses. However, if the market price does not reach the set price, the order may not be fulfilled. Some exchanges have validity options such as "Good 'Til Canceled (GTC)", "Immediate or Cancel (IOC)", and "Fill or Kill (FOK)".

- Applicable Scenarios: Suitable for traders who have a clear expectation of target prices, do not seek immediate execution, and are price-sensitive. For example, if predicting that the Bitcoin price will rebound to $60,000, a buy limit order can be set at this price; if expecting Ethereum to rise to $5,000 and then potentially pull back, a sell limit order can be set at that price.