#OrderTypes101

When interacting with an exchange, it is essential to understand the different types of orders to execute your strategy efficiently. A market order is executed instantly at the best available price, ideal when the most important thing is to enter or exit quickly, although the final price may vary slightly. In contrast, a limit order allows you to define the exact price at which you want to buy or sell; however, it will only be executed if the market reaches that level, which may take time or may not happen at all. The stop-loss order is automatically triggered when the price reaches a predefined level to limit losses; it is a risk management tool. There is also the take-profit order, which closes the position once a specific profit level is reached, and OCO (One Cancels the Other) orders, which combine a stop-loss and a take-profit in a single instruction. Knowing and being able to use each type of order will allow you to optimize your trades and protect your capital.