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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Understanding the Different Order Types
About Lesson
Stop-limit orders are good tools for limiting the losses you may incur in a trade. This type of order allows you to set a stop price and a limit price. If BTC was trading at $10,000 and you set up a stop-limit order at a stop price of $9,900 and a limit price of $9,895. Then a limit order at $9,985 will be placed when the price dips by $10.

However, the order is only placed after the stop price is hit. You do still run the risk of the price not recovering, in which case you have no protection if it continues to dip below $9,985, and the order may not be filled.

Exercise Files
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