#OrderTypes101 In cryptocurrency trading, different order types help traders execute strategies efficiently. Here’s a breakdown of the most common ones:
1. **Market Order **– Buys or sells immediately at the best available price. Fast but may suffer from slippage in volatile markets.
2. **Limit Order** – Sets a specific price to buy (below market) or sell (above market). Only executes if the market reaches that price.
3. **Stop Order (Stop-Loss)** – Triggers a market order when a certain price is hit. Used to limit losses or enter trends.
4. **Stop-Limit Order** – Combines stop and limit orders. When the stop price is reached, a limit order is placed (avoiding slippage).
5. **Immediate-or-Cancel (IOC)** – Fills as much as possible at the desired price, cancelling the rest instantly.
6. **Fill-or-Kill (FOK)** – Must execute entirely at the specified price or be cancelled immediately.
7. **Post-Only Order** – Ensures the order stays on the order book (no taker fees). Cancels if it would execute immediately.
8. **Trailing Stop Order** – Adjusts the stop price dynamically based on market movement, locking in profits.
9. **Iceberg Order** – Splits large orders into smaller hidden chunks to avoid market impact.
10. **TWAP (Time-Weighted Average Price) Order** – Executes trades evenly over time to minimize market disruption.
Each order type serves different needs: **market orders** for instant execution, **limit orders** for price control, **stop orders** for risk management, and **advanced orders** (like iceberg or TWAP) for large traders. Choosing the right one depends on strategy, volatility, and trading goals.