#OrderTypes101

#OrderTypes101

A Beginner's Guide to Crypto Order Types on CEX & DEX

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🛒 What Is an “Order” in Trading?

An order is a request to buy or sell a cryptocurrency at a specific price or under certain conditions. Orders are placed on exchanges and executed based on market conditions.

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🔹 1. Market Order

> 🟢 "Buy/Sell now at the best available price."

✅ Fast execution

❌ No price control — might suffer slippage

Use when: Speed matters more than price (e.g., news trading, stop-loss exits)

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🔸 2. Limit Order

> 🔵 "Buy/Sell only if price reaches a specific level."

✅ Set your price

❌ May not fill if price doesn’t hit your target

Use when: You want control over your entry/exit price

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🟠 3. Stop-Loss Order

> 🔴 "Automatically sell if price drops to protect your capital."

✅ Minimizes losses

❌ May trigger prematurely in volatile