Whether you are just starting or have some trading experience, you were surely shocked the first time you entered a platform and saw the number of orders like Market, Limit, OCO, Iceberg, TWAP, SL, TP, Trailing Stop, etc. You need to understand the types of orders you use within the platform, as the type of order determines how you profit and when you lose. Let's start from the beginning and explain the trading orders that you'll encounter on crypto platforms; we will explain what each type of order does, when to use it, its advantages, and what issues it has.
Market Order
This is the simplest and fastest type of orders. When you use it, it's like telling the platform, "Get me this currency now at whatever price is available." The platform goes to execute your order at the best price available at that moment.
When do you use it?
When you're in a hurry to enter a trade, whether for buying or selling, and you don't care about a slight price change.
For example, if Bitcoin is priced in the market at around $103,000, and you placed a market buy order, the platform will buy you at the nearest available price, even if the price moved a bit and became $103,050.
Features
Instant execution without much thinking and ideal during news or price explosions.
Disadvantages
The price you get might be a bit higher than what you were seeing due to something called slippage, and you also often pay higher fees because you enter as a Taker, not a Maker.
Limit Order
Here you tell the platform that you want to buy or sell but only when the price reaches a certain level. You set a specific price, and the order stays waiting until the market reaches it.
When do you use it?
When you want to control the price and are willing to wait a bit for the trade to execute at the price you have in mind.
For example, you think Bitcoin will drop a bit, so you set a limit order to buy at 103000. As soon as the market reaches that price, it executes automatically.
Features:
Full control over the price and you might pay lower fees depending on the platform because you add liquidity to the market.
Disadvantages
The market might not reach the price you set, and you could miss a nice trade. You also need to monitor if you want to adjust the price according to market movement.
Stop Loss / Take Profit Orders
These are orders that are tied to the trade after you open it. Stop Loss closes the trade if the market goes against you to limit the loss. Take Profit closes the trade if it reaches the target you set to secure the profit.
When do you use them?
When you want to manage your risk and won’t stay in front of the screen all the time.
For example, if you bought ETHEREUM at $2700, you might set a Take Profit order at $2900 and a Stop Loss at $2600. This way, if the market rises, you profit automatically. If it drops, you close the trade with a limited loss.
Features
Protection from large losses.
No need for constant monitoring.
Disadvantages:
The market might touch the Stop Loss and then rise, and at that time, you would have exited early. In times of high volatility, they might trigger at a slightly worse price than what you set.
OCO (One Cancels the Other)
This is a very smart order that allows you to set two orders at the same time. This is a professional order; it allows you to place two orders simultaneously, and the first one that gets executed... the second one is automatically canceled.
There are two types:
⬅️ Common Type
You place two orders: one for taking profit (for example, selling at 105,000) and one for stop loss (for example, selling at 92,000).
As soon as the price reaches your target or loses, the platform executes one and automatically cancels the other, of course, assuming you didn't enter with all the liquidity.
⬅️ Professional Type
You can not only sell with OCO...
You can also use it to enter a trade when the market moves in one of two directions.
🎯 For example, you place a buy order if the price drops at a certain support (Limit Buy at 0.45) and place another order if the price breaks a resistance (Stop Buy at 0.56).
As soon as the price reaches either one of them, the platform buys and cancels the other.
It means if the market goes down, you buy from the bottom. If it goes up, you ride the trend.
🟢 The advantage: High flexibility and you can enter the market from multiple scenarios.
🔴 Disadvantage: You need to be precise in setting prices to avoid getting triggered incorrectly.
Special Execution Orders (IOC – FOK – Post-only)
IOC (Immediate or Cancel)
This means execute the part you can immediately, and the rest gets canceled.
Useful if entering with a large amount and you don't want to wait for the rest of the order. However, it won't provide you with the full amount if liquidity is weak.
FOK (Fill or Kill)
Either the entire quantity is executed immediately, or the process is completely canceled. This is ideal if you want a complete transaction at once. However, its chance for execution is lower, especially in large orders.
Post-only
This means the order enters as a Maker only. If it tries to buy immediately (and becomes a Taker), the platform rejects it.
Suitable if you want to pay lower fees. However, if the price moves while you’re entering, the order might get rejected.
Trailing Stop
A smart order that moves with the market; you set a certain percentage (for example, 3%), and every time the price rises, the stop-loss order moves with it automatically.
When do you use it?
If you want to let the trade run and take the maximum profit possible but also protect yourself if the price reverses.
Features
Securing profits without monitoring.
It allows you to exit the trade before the market collapses on you.
Disadvantages:
If the market drops a bit and then rises again, you would have exited.
Iceberg Order (Split Order)
This is a large order that you split into smaller parts so the market doesn’t see that you’re entering with a huge quantity and cause panic or price changes.
When do you use it?
If you’re entering a very large trade and want to enter the market quietly.
Features
It hides your true buying or selling intention.
You protect yourself from price movements against you.
Disadvantages:
Execution might be delayed.
Each batch has its own fees.
TWAP (Time-Weighted Average Price)
You split the large order over certain time intervals so that the order is executed in several batches at an average price over time.
When do you use it?
If you are buying or selling a huge quantity and want to get the best average price possible without affecting the market.
Features
Relatively fair price
Calm and organized execution
Disadvantages
The price might move significantly while you are still executing the parts.
Order execution might take longer
✅ Choosing the type of order is not a "technical detail"; it determines the fate of the trade.
If you’re a beginner, stay away from complex orders and start with "Market" and "Limit" with "Stop Loss". Once you become proficient, try advanced tools like OCO, Trailing Stop, and TWAP.
