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A Guide to Choose the Right Crypto Order Type for Better Profits

by Eric

If you intend to gain a faster return on your investment in cryptocurrency, you have to choose from different types of crypto orders. These vary depending on whether you are buying or selling. It requires a thorough study of what each market order implies and which market and asset conditions you need to cash in on to receive better profits from your crypto investments.

What Is A Market Order?

A market order refers to purchasing an asset at the buy price listed by the exchange. Since it is supposed to be executed immediately, it is the most common cryptocurrency order. There are many types of crypto orders depending on triggers, the current price, and the buying or selling price. Read more about How to Learn More About Cryptocurrency

Order Types:

  • Limit Order

A limit order refers to the typical buy-or-sell order that dictates the price at which an asset should be purchased or sold. The limit buy orders should have their trigger price lower than the current price. On the other hand, limit sell orders should have their trigger price higher than the current price.

  • Stop Order

If you choose a stop order amongst the many types of crypto orders, you can specify the quantity of an asset to trade at a specific price. A stop sell order means your asset will automatically sell, so you don’t lose too much money.

  • Recurring Order

A recurring order is the most widely used strategy for investing in cryptocurrency or stocks. It allows you to deposit funds regularly and automates buying several crypto assets at the same time.

  • Stop-loss Limit Order

A stop-loss limit order allows you to limit your losses from your open position. It represents the market price. You need to specify the stop price and limit price.

  • Stop-loss Market Order

A stop-loss market order will help you limit the losses you incur from an open position. If it is reached, the stop price will trigger your stop order and submit a market order. You can order the trigger from the last trade price, mark price, or index price.

  • Task Profit Market Order

This type of order will allow you to set a target profit price to close out of an open position. This type of order is used to open or add to a position.

  • Take Profit Limit Order

Choosing this one will let you set a target profit price so that you can close out of an open position. You need to define two costs for a take-profit limit order: the trigger price and the limit price. You can have the order triggered from the last trade price, mark price, or index price.

  • Bracket Order

Choosing this type of order allows you to place one order to open a position and take profit and stop-loss orders. A limit order or a market order can be the opening orders. The trigger orders are strictly reduce-only.

  • Trigger Entry Orders

Choosing trigger entry orders will allow you to enter a position by using a trigger order. You can use it to trigger an order which the current price will execute immediately. You have to provide two prices for trigger entry market orders and entry limit orders- the trigger price in the limit price.

Immediate or Cancel:

This type of order executes at the price and quantity that is available. The rest of the order will be canceled. For instance, if there’s zero quantity available at the chosen price level, the order will be rejected, and the cancellation will be effective instantly.

Reduce-only Order:

Only the orders that will reduce the number of open contracts in any existing position will decrease the only order. Choosing the correct types of crypto orders that will garner enormous benefits for you requires a thorough understanding of the market, the various types, and the asset’s buy and sell price status.

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