#订单类型解析
In the cryptocurrency world, trading is never just as simple as 'buy' and 'sell'.
What often truly distinguishes you is the way you place orders — that is, the order type.
If you often encounter these situations:
Manually chasing prices and selling at a loss, always buying at highs and selling at lows
Wanting to buy at the bottom, but the moment you place an order, the market skyrockets
Wanting to stop loss or take profit, but a big bearish candle comes in and there's no time to react
Then you might need to spend two minutes to re-understand the 5 common order types in the cryptocurrency world 👇
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1⃣ Limit Order
Characteristics: You set a fixed price, and the transaction occurs only when the price reaches that level.
Advantages: Price is controllable, no slippage.
Disadvantages: If the market does not reach your set price, the order remains unfilled.
📌 Applicable Scenarios: Placing low price orders to buy at the bottom, or setting high prices to sell coins, suitable for patient, plan-oriented traders.
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2⃣ Market Order
Characteristics: Immediately executed at the best current market price.
Advantages: Quick execution, no waiting required.
Disadvantages: High slippage risk, especially with large orders or low liquidity.
📌 Applicable Scenarios: Rapid buying or selling during volatile market conditions to seize time.
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3⃣ Take Profit / Stop Loss
Characteristics: Set a critical point for profit or loss, which automatically triggers a market order when the price reaches it.
Advantages: Automated risk management.
Disadvantages: Can have significant slippage during extreme volatility.
📌 Applicable Scenarios: Setting a stop-loss line to prevent a crash, or automatically locking in profits without being greedy.
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4⃣ Conditional Order
Characteristics: Executes the order only after a certain trigger condition is met (can be either limit or market order).
Advantages: More flexible, such as buying only after breaking a certain price level.
Disadvantages: Requires accurate market prediction.
📌 Applicable Scenarios: Strategies like 'buy on breakout', 'sell on breakdown', etc.
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5⃣ Iceberg / Hidden Orders
Characteristics: Only part of the order volume is displayed externally or not displayed at all, but large orders exist behind the scenes.
Advantages: Prevents large players from targeting your orders, avoiding inducing volatility.
Disadvantages: Not commonly used by beginners, generally used in quantitative or large fund strategies.
📌 Applicable Scenarios: Large funds entering the market in batches, wanting to avoid being 'exposed' by the market.
