#订单类型解析

Different types of orders and their operation methods:

1. Market Order

Operation Method: Execute immediately at the best available price in the current market.

Advantages: Ensures execution, fastest speed.

Disadvantages: Cannot control execution price, may experience worse than expected prices due to slippage.

2. Limit Order

Operation Method: Specify a price to buy or sell, and it will only execute when the market reaches that price.

Advantages: Controls price, suitable for waiting for a more favorable price.

Disadvantages: May not execute.

3. Stop Order

Operation Method: When the market reaches the set price, it triggers a market order to close the position.

Common Use: Protect losses, set at a certain percentage below the entry price (e.g., -5%).

Disadvantages: Market triggers may still experience slippage.

4. Take Profit Order

Operation Method: Pre-set a profit price, automatically close the position when the market reaches that price.

Usually used together with stop orders to form a risk/reward ratio strategy setup.

5. Stop-Limit Order

Operation Method: When the market reaches the trigger price, it activates a limit order instead of a market order.

Advantages: Controls loss price.

Disadvantages: May not execute during a rapid market decline, leading to larger losses.