#OrderTypes101 Market Orders:

Definition:

Instructions to buy or sell an asset immediately at the current market price.How It Works: Executes instantly by matching with existing limit orders in the order book. For example, if Bitcoin is trading at $15,000 and you place a market order to buy 3 BTC, you’ll pay approximately $45,000, depending on available orders.Role: You’re a "taker" (removing liquidity), which may incur higher fees compared to makers.Use Case: Ideal for quick trades when price precision is less critical.Limit Orders:Definition: Orders to buy or sell at a specific price or better, placed on the order book.How It Works: Executes only when the market reaches your set price. For instance, a limit order to buy 1 BTC at $30,000 will only fill if the price drops to or below $30,000.Role: You’re a "maker" (adding liquidity), often with lower fees.Use Case: Useful for price control and strategic trading.Stop-Limit Orders:Definition: Combines a stop price (trigger) and a limit price (execution range) to limit losses or lock in profits.How It Works: If BTC is at $10,000, you might set a stop price at $9,900 and a limit price at $9,895. When the price hits $9,900, a limit order is placed at $9,895. However, if the price falls below $9,895, the order may not fill.Use Case: Risk management, but carries the risk of non-execution in fast-moving markets.One-Cancels-the-Other (OCO) Orders:Definition: Combines two conditional orders (e.g., a stop-limit and a limit order), where executing one cancels the other.How It Works: For BTC at $10,000, you could set an OCO to buy at $9,900 or sell at $11,000. If one triggers, the other is canceled.Use Case: Allows planning for multiple market scenarios simultaneously.Fill-or-Kill (FOK) Orders:Definition: Orders that must be filled immediately in full or canceled.How It Works: If you order 10 BTC at $10,000, it will only execute if the entire 10 BTC is available at that price; otherwise, it’s canceled.Use Case: Ensures complete execution without partial fills, useful for large trades.