#OrderTypes101 Understand the types of orders – survive in the volatile crypto market!
Trading without knowing how to use the right type of order is like "going into the forest without a knife." Below are the 3 basic types of orders that every trader should know:
1. Market Order: Buy/sell immediately at the market price. Fast – but can easily slip in price during strong fluctuations.
2. Limit Order: Set the price you want to buy or sell. Safer, but may not be executed if the price does not reach it.
3. Stop-Limit Order: Combines both loss protection and profit taking. When the price hits the "stop," the order is activated at the "limit" level. Extremely useful when you can't watch the chart 24/7.
Knowing how to choose the right type of order is an important part of managing risk and optimizing profits.