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

Limit Order

- Definition: Users pre-set their desired buy or sell price and trading quantity, and the system automatically executes the order when the market price reaches or exceeds the set price.

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

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