Let's explore the system that is so hidden that millions of people don't even suspect how they are fed daily into the digital maw of volatility. We're talking about order types on cryptocurrency exchanges — the very tools that can make you either rich or bankrupt in just three candles.
"Market Order" — a way to say: "Take my money immediately!"
Let's start with the classic — market order (Market Order). Its essence is simple: "I want to enter a trade NOW, no matter the price." It sounds romantic. Almost like falling in love at first sight.
But what actually happens? You click "Buy", and you get a price that's 2–5% higher due to slippage. In 2024, Binance reported that 27% of market orders for BTC experienced slippage exceeding 0.5%. A lot? Yes. Especially when it comes to $100,000+.
So who profited from your market order? Well, of course, the one who placed a limit order.
"Limit Order" — it's like Tinder, only instead of sex, you'll get fiat
Next — limit order. You specify the price and wait. Sometimes a long time. Sometimes — forever. But if it gets executed — you enter profitably.
Exchanges like OKX and Bitget have shown that makers (those who place limit orders) receive a commission rebate of 0.01% to 0.05% in 2024. You know who pays for this? Market takers. Or, more simply, those who haven't read OrderTypes101.
"Stop-Loss" — an order that is activated at the worst moment
Now let's move on to the stop-loss. It's like fire insurance. But... if the insurance only worked when you were already inside a burning house.
A stop order is activated when the price reaches the trigger. Here's the news: in low liquidity futures markets, stops are often deliberately hunted. In 2024, a study by The Block showed that 57% of large movements in a day occur right after touching levels with high stop density.
Surprise? No. You were knocked out, and the price went your way. Standard.
"Trailing Stop" — a cool idea that you won't set up correctly
A trailing stop sounds smart. It moves with the price and locks in profit if the trend reverses.
In practice — most traders set too short a step, and it triggers on micro-corrections. Reminds me of American politics: the idea seems good, but the implementation is a complete circus.
"OCO" — sounds like a rap group, but this is your chance to trade like an adult
One Cancels the Other — an order where you immediately set TP and SL. If one triggers, the other is canceled.
Only on some exchanges is this tool limited or glitchy. For example, at the beginning of 2024, KuCoin users complained that their OCO triggered... twice. Yes, TP and SL could execute together. Amazing. Let's have more crypto technologies!
"Post-Only", "Reduce-Only", "Fill or Kill" — everything that sounds like spy codes
Professional traders use "post-only" to avoid paying fees, and "reduce-only" to avoid accidentally doubling their position and being liquidated like a newbie on Bybit with 50x leverage.
But you won't learn this from YouTube channels with the title "1000% to your deposit in a day".
RESULT: Those who don't know the types of orders become a type in a liquidation order
Exchanges don't teach you these types of orders. It's not in their interest. They benefit from you buying at market and losing on stops. It's a business, not charity.
If you haven't studied OrderTypes101 — you are fodder for whales.
While you trade on emotions, someone is placing limits, building volumes, and hitting stops. And then they tweet: "BTC to 100k" — when you are already short.