#OrderTypes101

Most Common Types of Orders:

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1. Market Order

🔹 Buy or sell immediately at the best available price in the market.

✅ Fast execution – ❌ Does not guarantee the price.

Example: You want to buy BTC now at any available price, so you place a Market Order, and it is executed immediately.

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2. Limit Order

🔹 Set a specific price to buy or sell the currency. It is executed only if the market reaches that price.

✅ Price control – ❌ May not be executed.

Example: You want to buy ETH at a price of $3,000, you place a Limit Order, and it will only be executed if the price reaches $3,000$ or less.

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3. Stop Order / Stop-Loss

🔹 Used to protect profits or limit losses. It is activated when the price reaches a certain level.

Two types:

• Stop-Loss: for selling when the price drops.

• Stop-Buy: for buying when the price rises (often used in breakout strategies).

Example: You have BTC and fear its drop, you place a Stop-Loss at $58,000. If the price reaches it, BTC is sold to minimize the loss.

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4. Stop-Limit Order

🔹 A combination of a Stop Order and a Limit Order. When the price reaches a certain level (Stop), a buy or sell order is activated at a specified price (Limit).

✅ More precise – ❌ May not be fully executed.

Example: You place a Stop at $2,100$ and a Limit at $2,090; if the price drops to $2,100, an attempt is made to sell (trailing stop order).