#OrderTypes101 # Order Types 101 ๐๐ก
Understanding **order types** is essential for making smart trades in any financial marketโcrypto, stocks, forex, etc. Here's your crash course:
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## ๐ 1. **Market Order**
* **What it does**: Executes immediately at the current market price.
* **When to use**: When speed matters more than price (e.g. high volatility).
* **Pros**: Fast execution.
* **Cons**: Can result in slippage (you pay more or sell for less than expected).
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## ๐ฏ 2. **Limit Order**
* **What it does**: Executes only at your specified price or better.
* **When to use**: When you want control over the price and can wait.
* **Pros**: Precise pricing.
* **Cons**: May not get filled if the market doesn't hit your price.
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## ๐ 3. **Stop-Loss Order**
* **What it does**: Sells (or buys) automatically when the price hits a trigger point.
* **When to use**: To minimize losses or protect profits.
* **Pros**: Risk management tool.
* **Cons**: Can be triggered by short-term volatility.
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## ๐ง 4. **Stop-Limit Order**
* **What it does**: Combines a stop-loss and a limit order. When triggered, it places a limit order instead of a market order.
* **When to use**: When you want to avoid slippage after your stop is triggered.
* **Pros**: More control than a regular stop-loss.
* **Cons**: May not fill if the limit price isnโt reached.
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## โฑ๏ธ 5. **Trailing Stop Order**
* **What it does**: Moves the stop price with the market in your favor, locking in gains.
* **When to use**: To automate profit-taking while allowing profits to run.
* **Pros**: Protects gains without manual tracking.
* **Cons**: Not always available on all platforms.
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## ๐งฉ 6. **Fill or Kill (FOK)**
* **What it does**: Must be filled entirely and immediately or gets canceled.
* **When to use**: For large trades when partial execution is not acceptable.
* **Pros**: Guarantees full trade or nothing.
* **Cons**: Might cancel often in low liquidity.
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## ๐ 7. **Good-Til-Canceled (GTC)**
* **What it does**: Order stays active until manually canceled.