#OrderTypes101

In the world of crypto (digital currencies), there are several types of buy and sell orders used to execute trades according to the trader's strategy. Here are the most common types of orders:

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1. Market Order

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

✅ Quick execution – ❌ Price not guaranteed.

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

🔹 Specify a certain 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 threshold.

Two types:

• Stop-Loss: to sell when the price drops.

• Stop-Buy: to buy 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 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 threshold (Stop), a buy or sell order is activated at a specified price (Limit).

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