#OrderTypes101
1. ๐ข Market Order
Definition: An order to buy or sell immediately at the current market price.
โ Use when: Speed is more important than price.
โ Downside: May suffer from slippage if the market is volatile.
Example: โBuy 1 BTC nowโ โ Filled instantly at the best available price.
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2. ๐ต Limit Order
Definition: An order to buy or sell at a specific price or better.
โ Use when: You want control over price.
โ Downside: May not execute if the market doesnโt reach your limit price.
Example: โBuy 1 BTC at $65,000โ โ Order waits until price drops to $65,000.
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3. ๐ด Stop-Loss Order
Definition: An order to sell (or buy) once a certain price is triggered, to limit losses.
โ Use when: You want to exit a losing trade automatically.
โ Downside: In highly volatile markets, it may execute at a worse price than expected.
Example: Bought ETH at $3,000 โ Place stop-loss at $2,800.
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4. ๐ Stop-Limit Order
Definition: A combination of stop-loss and limit. When the stop price is hit, a limit order is placed.
โ More control over execution price.
โ May not fill if the price moves past your limit.
Example: Stop price = $2,800, limit = $2,790 โ Sell ETH only between those prices.
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5. ๐ฃ Take-Profit Order
Definition: Automatically closes a position in profit once the price reaches a specified level.
โ Locks in profits.
โ Like stop orders, may not always execute at the exact price.
Example: Bought BTC at $60,000 โ Take profit at $70,000.