What are Order Types?

Order types are different methods of executing trades in cryptocurrency markets. Each type has specific rules for when and how it executes, offering traders various ways to enter and exit positions based on their strategy and market conditions.

Common Order Types

Market Orders

• Immediate execution at best available price
• Guaranteed execution, not price
• Higher risk of slippage
• Best for immediate entry/exit

Limit Orders

• Set specific price for execution
• No guarantee of execution
• Better price control
• Useful for entry/exit planning

Stop Orders

• Trigger at specified price level
• Convert to market or limit orders
• Used for risk management
• Common for stop losses

Advanced Orders

OCO (One-Cancels-Other)

• Combines stop loss and take profit
• Either order cancels the other
• Complete position management

Trailing Orders

• Dynamic price following
• Adjusts with market movement
• Helps protect profits

Best Practices

Selection Criteria

• Market conditions
• Trading strategy
• Risk tolerance
• Time horizon
• Liquidity needs

Related Terms

• Stop Loss
• Take Profit
• Slippage
• Market Depth