📘 #OrderTypes101 | Types of Trading Orders in the Crypto and Financial Markets
To better understand the market, it is essential to familiarize yourself with the most important types of orders you can use when trading:
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1️⃣ Market Order
🔹 Immediate execution at the best available price in the market.
✅ When to use it?
When you want to enter or exit quickly without delay.
❗ Warning: Slippage may occur if liquidity is low.
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2️⃣ Limit Order
🔹 You set your own price, and the order is executed only if the market reaches that price.
✅ When to use it?
When you want full control over the price at which you buy or sell.
❗ Warning: The order may never be executed if the price does not reach it.
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3️⃣ Stop Order
🔹 The order is triggered only when the price reaches a certain level.
📌 Two common types:
Stop-Loss: To minimize losses if the price drops
Stop-Buy: To buy when a certain level is breached
✅ Useful for risk management or entering price breakouts.
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4️⃣ Stop-Limit Order
🔹 A combination of a stop order and a limit order: triggered at a specific price, but executed at a specified price.
✅ More precise control, but may not be executed in a volatile market.
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⚖️ Summary:
Order Type Speed Price Control Suitable for
Market High Low Quick Entry
Limit Low High Precise Trading
Stop Medium Medium Risk Management
Stop-Limit Medium High Precision Conditional Entry
