#OrderTypes101 📦 Types of Orders in Trading

1. ✅ Market Order

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

✅ Fast and executed immediately.

⚠️ But it can be subject to slippage (the price may change slightly when executed).

Example:

You click "Buy BTC" at the current market price (e.g. $68,000), and it will be bought immediately.

2. 🎯 Limit Order

Buy or sell at a specific price that you set.

Suitable for price negotiation.

The order will wait until someone wants to sell/buy at that price.

Example:

Place Buy Limit BTC at $66,000 → the order will only execute if the price drops to $66,000.

3. 🛑 Stop Order (Stop Market)

The order will automatically activate when the price touches a certain level, then buy/sell at the market price.

Suitable for automatic cut loss or entering during a breakout.

Example:

Stop sell ETH at $3,500 → If the price drops to $3,500, the sell order will execute immediately at the market price.

4. 📉 Stop-Limit Order

A combination of stop and limit:

The order activates at a certain price, then executes as a limit order.

More flexible and precise.

But there is a risk of not being executed if the price just passes by.

Example:

Stop price: $3,500

Limit price: $3,490

→ When ETH drops to $3,500, the order will activate and only sell at $3,490 or above.

5. 🚨 Trailing Stop Order

A stop order that moves with the market price at a certain distance (e.g. 5%).

Suitable for locking in profit while still allowing the price to rise.

Example:

Trailing stop 5% on BTC

→ When BTC rises to $70,000, the stop will also rise to $66,500

→ If BTC drops from the peak by more than 5%, it will be sold automatically.