Types of orders in the cryptocurrency market
There are two types of orders - basic and advanced.
Basic types of orders:
1. Market order - Executes immediately at the current market price.
Advantages: Instant execution, guaranteed filling.
Disadvantages: Price slippage may occur during high volatility.
2. Limit order - Executes only at the specified price or better.
Advantages: Control over entry/exit price, no slippage.
Disadvantages: No guarantee of execution.
3. Stop order - Activates when the price reaches a certain level. Usually used to limit losses.
Advanced types of orders:
1. Stop-limit order - A combination of stop and limit orders - thus when the stop price is reached, a limit order is placed.
2. OCO order - A pair of orders, when one is executed, the other is automatically canceled - i.e., simultaneous setting of take profit and stop loss.
3. Trailing stop order - A dynamic stop order that follows the price when moving in a favorable direction - Automatic profit locking upon reversal.
