#OrderTypes101
🎯 #OrderTypes101 – Practical Guide to Order Types in Crypto Trading
In the world of crypto trading, it's not enough to choose what to buy: it's essential to know how. The types of orders determine the execution of a trade and directly influence the results.
Here are the 4 main orders that every trader should know:
📌 1. Market Order
Executed immediately at the best available price.
✅ When to use it:
• Market is moving strongly
• Urgency to enter or exit
⚠️ Caution: Possible slippage, i.e., execution at a worse price than expected.
📌 2. Limit Order
Executed only if the price reaches the desired level.
✅ When to use it:
• You want to buy lower or sell higher
• In support/resistance areas
💡 Advantage: No slippage
❗ Disadvantage: The order may never be executed
📌 3. Stop-Loss
Automatically closes a position if the market moves against you.
✅ When to use it:
• Always, to protect capital
• In volatile markets or when you can't monitor
🛡️ Goal: Limit losses
📌 4. Take-Profit
Closes the position once a profit target is reached.
✅ When to use it:
• You have a specific goal
• You want to protect already realized gains
📌 Tip: Always combine Stop-Loss and Take-Profit
Real Experience
During a trade on $SOL, I placed a limit order in the support zone. The price hit that level and then bounced back: trade closed in profit. A market order would have made me enter higher and earn less.
Lesson: the type of order can make a difference.
Every order has a role. Using them well means managing risk better, avoiding impulsive mistakes, and optimizing every operation.
👉 Share your experience with #OrderTypes101 on Binance Square!