#TradingPairs101

The term "order type" refers to the specific instructions a trader or investor gives when buying or selling an asset (like a stock, cryptocurrency, or commodity) on a trading platform or exchange. It defines how and when an order should be executed.

Common Order Types:

1. Market Order

Definition: Buy or sell immediately at the best available price.

Use case: When speed is more important than price.

2. Limit Order

Definition: Buy or sell at a specific price or better.

Use case: When you want to control the price at which the order is executed.

Example: Buy at $100 or less; sell at $110 or more.

3. Stop Order (Stop-Loss Order)

Definition: Becomes a market order once a certain price is reached.

Use case: To limit losses or protect profits.

Example: Sell if price drops to $95.

4. Stop-Limit Order

Definition: Becomes a limit order once a stop price is triggered.

Use case: Combines the stop and limit features for more control.

5. Trailing Stop Order

Definition: Stop price moves with the market price at a set distance.

Use case: To lock in profits while allowing the trade to run.

6. Fill or Kill (FOK)

Definition: Must be filled completely and immediately, or canceled.

Use case: For large orders where partial fills are not acceptable.

7. Immediate or Cancel (IOC)

Definition: Fill as much as possible immediately, cancel the rest.

8. Good 'Til Canceled (GTC)

Definition: Stays open until it's filled or canceled manually.

9. Day Order

Definition: Expires if not executed by the end of the trading day.