In trading, understanding order types is essential for risk management and achieving goals. Most centralized and decentralized exchanges offer basic and advanced order types, each suited for different strategies and market conditions.
A market order executes immediately at the current price. It’s useful for fast entry or exit but doesn’t guarantee the best price.
A limit order sets a specific price at which a trade should be executed. It offers more control but may not fill if the market doesn’t reach that level.
A stop-loss order activates if the price moves against your position, limiting losses. Take-profit orders secure gains once a target price is hit.
A trailing stop adjusts with the market price, protecting profits while allowing trades to stay open during favorable moves.
Choosing the right order type helps traders manage entries and exits, protect capital, and stay aligned with their strategy. It’s a basic yet vital skill for navigating the crypto market with confidence.
