Order Types Explained

Market Order

What: Buy/sell immediately at current market price
Pros:
- Instant execution
- Guaranteed fill
Cons:
- May get poor price (slippage)
- Expensive in volatile markets

When to use: Emergency exits, high liquidity coins

Limit Order

What: Set your desired buy/sell price
Pros:
- Control exact entry/exit
- No slippage
- Can save on fees
Cons:
- May not fill
- Miss quick moves

When to use: Planning entries, low liquidity, large positions

Stop-Loss Order

What: Automatically sell when price drops to set level
Purpose: Limit losses, protect profits

Example: Buy BTC at $30k, set stop-loss at $29k

Stop-Limit Order

Combination of stop and limit - triggers at stop price but fills at limit price.

Practical Examples

Buying the Dip

• BTC at $31,000
• Set limit buy at $30,000
• Fills when price drops

Taking Profit

• ETH at $2,000 (you bought at $1,500)
• Set limit sell at $2,500
• Automatically sells at target

Protecting Gains

• SOL at $100 (you bought at $50)
• Set stop-loss at $90
• Locks in profit, limits downside

Pro Tips

1. Use limit orders for 90% of trades
2. Market orders only for emergencies
3. Always set stop-losses
4. Adjust limits during high volatility

Master order types to become a disciplined trader!