#CircleIPO Understanding Order Types is the Foundation of Smart Trading in Crypto. Let's break down what types of orders exist and when to use them.
🔹 **Market Order**
Executed instantly at the current market price. Suitable for urgent transactions, but can lead to slippage in low liquidity.
🔹 **Limit Order**
You specify the price at which you want to buy or sell. The order is executed only if the market reaches that price. A great tool for those who want to control entry/exit prices.
🔹 **Stop Order**
Triggers only when a certain price is reached. Often used to limit losses or to enter a position after a breakout.
🔹 **Stop-Limit Order**
A combination of stop and limit: when the price reaches the trigger (stop), a limit order is created. More control, but there is a risk that the order may not be executed.
🔹 **OCO (One Cancels the Other)**
Two orders: if one is executed, the other is canceled. Perfect for setting TP and SL at the same time.
⚙️ Choosing the right order = risk management + trading efficiency.