Types of orders
on SPOT Crypto Market

Market order

A Market order is filled immediately at the best available price.

OBJECTIVE: to buy or sell at once (exit, entry) and with certainty.

Limit Order

Limit Order - order is filled at a specific price or "better" (lower when buying, higher when selling), thus: 

• Buying price must be below the current price (otherwise it will be executed immediately)

• Selling price must be above the current price (otherwise it will be executed immediately)

OBJECTIVE: when we are waiting for a better price to enter or exit:

Buy (ENTER): we want to buy cheaper, but expecting price increase after the order (place BUY LIMIT ORDER ON SUPPORT)

SELL (EXIT): when we want to sell more expensive, but expecting a decrease after the order (i.e. SELL LIMIT ORDER at Resistance - type of TP).

Stop order

Stop order / stop market order - order is filled at stop price (precisely: at stop price the market order is opened, so the stop price acts as a trigger)

Can be put above and below the current price.

OBJECTIVE: 

• BUY (enter) - buying after breakout, counting that the pump will continue 

• SELL (exit) - sell after breakout, counting that the dump will continue 

Stop-Limit Order

Stop Limit Order – after the stop price is reached the order is filled at the limit price or "better". 

The stop price triggers the limit order. It’s a normal limit order.

It is a kind of a stop order, so the asumption is that the trend (pice directrion) will be continue. But It also has limit, so not to buy to expensivly or not to sell to cheaply. Without a limit, your order would be filled at whatever the market price is. Some traders prefer to hold than sell at any cost.

If limit price = stop price then its stop order. 

Best practice: 

When buying: limit price above stop price

When selling: limit price below stop price

OBJECTIVE: to buy/sell after a breakout, but not too expensive (buy)/cheap (sell)

A One-Cancels-the-Other Order

A One-Cancels-the-Other (OCO) order combines one stop limit order and one limit order, where if one is fully or partially fulfilled, the other is canceled.

An OCO order on Binance consists of a stop-limit order and a limit order with the same order quantity. Both orders must be either buy or sell orders. If you cancel one of the orders, the entire OCO order pair will be canceled.

OBJECTIVE: To set an entry (or exit) both below and above the current price.

BUY (entry): e.g. the price is in the middle of the range. You set the limit order (price) below, i.e. around support. At the same time, you set a Stop-Limit order above the current price, e.g. above resistance, in case of a breakout.

SELL (exit): the limit price is above the price, the stop is below. 

For buy orders:

For sell orders:

Trailing Stop Order

A Trailing Stop Order allows traders to place a pre-set order at a specific percentage away from the market price when the market swings. It locks in profit by enabling a trade to remain open and continue to profit as long as the price is moving in the direction favorable to traders. It does not move back in the other direction. When the price moves in the opposite direction by a specified percentage, the Trailing Stop Order will be executed at market price

Trailing Buy order strategy is the best way to go long. The order follows market price as it goes down and triggers a Buy order if/when the price rises from its low by the amount set as Trailing Distance. This allows you to buy at a lower price and do that exactly when the price trend reverses, increasing your chances of making a profit.

Trailing Stop Sell is a great way to exit a long position. The order follows market price as it goes up and triggers Sell if/when the price falls from its peak by the amount set as the Trailing Distance. That allows you to ride the market up to capture the maximum profit possible by exiting exactly when the price trend reverses.