In cryptocurrency trading, order types determine how your trades are executed. Here are common order types:
*1. Market Order*: Executes immediately at the best available price.
*2. Limit Order*: Executes at a specified price or better.
*3. Stop-Loss Order*: Triggers a sale when the price falls to a specified level, limiting losses.
*4. Take-Profit Order*: Closes a position when the price reaches a specified level, securing profits.
*5. Stop-Limit Order*: Combines stop-loss and limit orders, executing at a specified price after a trigger price is reached.
Understanding order types helps traders:
1. Manage risk
2. Optimize trading strategies
3. Execute trades efficiently