#OrderTypes101

Understanding the types of orders is essential in cryptocurrency trading. Below is the analysis:

1. Market Order:

Executed immediately at the current market price.

✅ I use this order when I want to enter or exit a trade quickly, especially in highly liquid markets.

2. Limit Order:

Executed only at a specific price or better.

✅ Great for setting buy or sell prices in advance. I use this order when I don't want to chase the market.

3. Stop Loss Order:

Automatically sells a position if the price drops to a certain level.

✅ Important for risk management. I always set a stop loss order to protect my capital in highly volatile trades.

4. Take Profit Order:

Closes a trade when the price reaches the predetermined target.

✅ Helps lock in profits. I use this order along with the stop loss to automate my exits.

My strategy:

I often combine limit orders for entry, and stop loss + take profit for exit. This gives me both control and protection in any market conditions.