1. Market Order
How does it work? It executes immediately at the best available market price, without specifying the price.
When do you use it? If you want to execute a trade quickly and at any available price—like quickly seizing an opportunity or an immediate exit from a certain position.
Disadvantages: No control over the price, you may encounter slippage in low liquidity markets.
2. Limit Order
How does it work? You specify the price at which you want to buy or sell—or better than that.
When do you use it? When you want to enter at a specific price level, for example: buying BTC at a lower price than the current market price.
Advantages: Complete control over the price.
Disadvantages: The order may not execute if the price does not reach the required limit.
3. Stop-Loss Orders
How does it work? When the price reaches a certain point, it converts the order to a Market Order (in the stop-market type) or a Limit Order (in stop-limit).
When do you use it? To protect capital from sudden downturns, especially with high volatility in cryptocurrencies.
Example: If you bought ETH at $3000 and set a stop-loss at $2700, it will automatically sell when reached to minimize loss.
Limit vs Market Type:
Stop-Market: Guarantees execution but the price may vary slightly after execution.
Stop-Limit: More precise control over the price but execution is not guaranteed if the market drops quickly.
4. Take-Profit Orders
How does it work? It executes when a certain profit target is achieved—usually as a Limit price (or Market on some platforms).
When do you use it? To secure profits without needing to monitor the market 24/7. Example: from ETH at $3000, set take-profit at $3500.
5. OCO – One-Cancels-Other (Stop-Loss + Take-Profit)
How does it work? You set a profit target and a stop loss together, and one executes while the other is automatically canceled.
When do you use it? To cover both scenarios—a price going up to achieve profit or going down to limit loss—without continuous monitoring.
✅ When do I use which type?
Condition Most Suitable
I need a quick entry or exit. Market Order
I want the perfect price (without hurry) Limit Order
Protection from sudden losses Stop-Loss (Market/Limit)
Securing targeted profits. Take-Profit
Covering both scenarios together OCO
I often rely on OCO as it combines loss protection and smart profit securing, without needing to monitor trading every second—an ideal choice for automatically managing risk.
🎯 Summary
Market = Fast at any price.
Limit = Price control, without execution guarantee.
Stop-Loss = Loss limiter, executes on a negative trend.
Take-Profit = Setting a profit target, securing gains automatically.
OCO = The best choice to protect oneself from loss and profit at the same time.
Share these guidelines and add your personal opinion on which tool you use and why. ✍️
#Order Types 1