#OrderTypes101

Here’s your #OrderTypes101 guide—breaking down key order types used in trading, especially in crypto and stocks:

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1. Market Order 🔄

• What it does: Executes immediately at the best available price.

• Best for: Quick execution in highly liquid markets.

• Risk: Price may slip, especially with large orders or low liquidity.

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2. Limit Order 🎯

• What it does: Sets the maximum (buy) or minimum (sell) price you’re willing to accept.

• Best for: Precise entry or exit at desired price.

• Risk: May not execute if the market never reaches your price.

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3. Stop Order (Stop-Market) 🚫➡️

• What it does: Converts to a market order once the stop price is hit.

• Best for: Exiting quickly when price moves unfavorably.

• Risk: Slippage at execution, especially in fast-moving markets.

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4. Stop-Limit Order ⏳🎯

• What it does: Becomes a limit order at a specified stop price.

• Example: Stop at $90, Limit at $88 → when $90 triggers, sell at ≥ $88.

• Best for: Combining stop protection with price control.

• Risk: If the market gaps past your limit, it may not execute.

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5. Take-Profit Order 🎉

• What it does: A type of limit order for locking in gains when a target price is hit.

• Best for: Securing profits without watching the market constantly.

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6. OCO (One-Cancels-the-Other) 🚦

• What it does: Sets two linked orders (typically a stop and a take-profit). Fulfilling one automatically cancels the other.

• Best for: Managing risk & reward simultaneously with one setup.