#OrderTypes101 When we talk about "orders 101 on Binance", we refer to the most basic and fundamental types of trading orders that every beginner should know to operate on the platform. Mastering these orders is the first step to making any type of transaction in the cryptocurrency market.
The "101" orders on Binance usually include:
* Market Order:
* What is it? It is an order to buy or sell an asset immediately at the best available price in the market at that moment.
* When to use it? When speed of execution is your priority and you don't care about the exact price. Ideal for quick entries or exits from the market.
* Advantage: Instant execution.
* Disadvantage: Less control over the execution price, there may be "slippage" in volatile markets, meaning the final price may be slightly different from what you saw.
* Limit Order:
* What is it? It is an order to buy or sell an asset at a specific price or better. Your order will only be executed when the market price reaches or exceeds your limit price.
* When to use it? When you want to have complete control over the price at which you buy or sell, and you are willing to wait for the market to reach that price.
* Advantage: It secures the desired price or a better one.
* Disadvantage: The order may not be executed if the market price never reaches your limit.
* Stop-Loss Order:
* What is it? It is an order designed to limit your losses. You set a "stop price" (activation price). When the asset price reaches that level, a market order (or limit, if it's a stop-limit) to sell the asset is automatically activated.
* When to use it? To protect your capital in case the price of an asset falls drastically.
* Advantage: Minimizes losses.
* Disadvantage: Does not guarantee execution at the exact price in very volatile markets (especially if it's a "stop market" order).