#OrderTypes101 1. Market Order
• You buy or sell immediately at the best available market price.
• The fastest way to execute a transaction.
• The downside is the lack of control over the exact execution price — it may vary depending on liquidity.
2. Limit Order
• You set the price at which you want to buy or sell.
• The transaction will only be executed if the price reaches the established limit.
• Gives you more control, but the transaction may not be executed if the price does not reach the limit.
3. Stop Order / Stop-Loss
• An automatic order that activates after a specified price is reached.
• Mainly used to limit losses or secure profits.
• Example: you have BTC at $30,000, you set a stop-loss at $28,000 — if the price drops to $28,000, you automatically sell.
4. Stop-Limit Order
• A combination of stop and limit order.
• After reaching the stop price, the limit order is activated.
• Allows for more precise control over the execution price after the stop is activated.
5. Take Profit Order
• You set the price at which you want to automatically sell to realize a profit.
• Helps to realize profits without constantly monitoring the market.
6. Trailing Stop Order
• A stop-loss that follows the price, e.g., 5% below the current price.
• Protects profits by allowing the stop-loss to automatically move up as the price rises.
7. Iceberg Order
• Splits a large order into smaller parts that are gradually executed.
• Popular in large transactions to avoid impacting the market price.