Lesson 4 of 6 11 min read
Order types that protect you
Market, limit and stop orders — and when to use each.
Market orders
Fill immediately at the best available price. Fast, but in thin or fast markets you may get a worse price than expected (slippage).
Limit orders
Fill only at your price or better. You control the price but may not get filled. Most planned entries use limits.
Stop orders
Trigger when price reaches a level. A stop-loss exits a losing trade automatically, so a bad idea costs a planned amount rather than an open-ended one.
Key takeaways
- Market = speed, limit = price control.
- Every trade should have a pre-planned stop-loss.
- Slippage is worst in fast, thin markets.
Exercise
On a demo or tiny position, place one limit buy and a matching stop-loss. Note how each behaves.
Educational content only, not financial advice. Crypto is volatile and you can lose money.