Course Content
Understanding the Different Order Types
When you’re trading stocks or cryptocurrency, you interact with the market by placing orders: A market order is an instruction to buy or sell immediately (at the market’s current price). A limit order is an instruction to wait until the price hits a limit or better price before being executed That’s orders in a nutshell. Of course, each of these two categories has different variations that do different things, depending on how you want to trade. Curious? Read on.
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Introduction
Market order vs. limit orders
What you need to know about market orders
Common types of orders
Stop-limit orders
One-cancels-the-other (OCO) orders
What’s time in force?
Closing thoughts
Understanding the Different Order Types
About Lesson
A “one cancels the other” (OCO) order is a sophisticated tool that allows you to combine two conditional orders. As soon as one is triggered, the other is canceled. If we take the BTC at $10,000 example, you could use an OCO order to either buy Bitcoin when the price reaches $9,900 or to sell it when the price rises to $11,000. One of these two will be executed first, meaning that the second one is automatically canceled.
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