An order is the foundation of trading: a complete guide to order types for crypto traders

An order is a tool that allows traders to buy and sell assets on the market. Before starting trading, it’s important to understand what types of orders are available and how each of them works. From simple market orders to complex algorithmic strategies — understanding different order types is critical for successful trading.

Three Basic Tools: Market, Limit, and Conditional Orders

An order is primarily a command to buy or sell. Let’s start with the three main types that form the foundation of all trading on the platform.

Market Order — Immediate execution at the current price

This is the simplest type of order. When you place a market order, it executes immediately at the best available price on the market. If you want to quickly enter or exit a position without waiting for a specific price — this is your choice.

However, there are two downsides to this approach. First, the final execution price may differ from your expectation due to market volatility (known as slippage). Second, you pay a higher taker fee because you are taking liquidity from the market.

Limit Order — Trading at your desired price

A limit order gives you control over the price. You specify the exact buy or sell price, and the order will only execute when that price or better is reached.

The logic here is interesting. If the order price is less favorable than the current market price, the order will execute immediately (like a market order, with a taker fee). If the order price is favorable, it will enter the order book, waiting for execution with a lower maker fee.

The main risk: if the market never reaches your specified price, the order remains unfilled.

Conditional Order — Automation triggered by a condition

A conditional order only triggers when a certain condition is met. For example, you can set: “When the price reaches $50,000, place a market buy order.” This is a powerful automation tool, but its effectiveness depends on market conditions at the time of trigger.

Risk Management Tools: Take-Profit and Stop-Loss

An order is not only a way to enter a position but also a tool to exit. The two most important exit types are take-profit (TP) and stop-loss (SL).

A take-profit order automatically closes your position when a target profit level is reached. A stop-loss order closes the position at a certain loss level, protecting your capital from large losses.

On the platform, these orders work as conditional orders: they trigger at a specified price and then execute based on the logic of the chosen order type (market or limit). This built-in feature greatly simplifies trade management.

Special Strategies for Placing Large Orders

Iceberg Order — Hidden entry

An iceberg order splits a large order into smaller parts that execute sequentially. Only the top “tip” of the iceberg is visible on the market — the first small part. This helps avoid significant market impact and hides your true position size.

OCO Order (One-Cancels-Other) — Flexible strategy

An OCO combines two conditional orders so that executing one immediately cancels the other. For example: “If the price rises to $52,000 — take-profit; if it falls to $48,000 — stop-loss.” The first event to trigger will execute, and the other will be canceled automatically.

Specialized Orders for Different Scenarios

Post-Only Order — Maker fee guaranteed

An order is a tool, and Post-Only is a special setting for limit orders. If the order cannot be immediately filled as a maker (adding liquidity to the book), the system cancels it. This guarantees you pay the maker fee instead of the more expensive taker fee.

Reduce-Only — Exit only

This limit order can only reduce your position; it will never open a new one or increase an existing position. It protects against accidental risk escalation.

Trailing Stop — Dynamic profit protection

A trailing stop automatically follows the rising market price at a set distance. If the price moves in your favor, the stop level moves up, locking in profit. If the market reverses, the order triggers, protecting accumulated gains.

Close-On-Trigger — Delayed position closing

An order is a command, and Close-On-Trigger is a command to “close the position at a certain price.” Unlike a regular stop-loss, this is specifically a full position closure command, not just a reduction.

Execution Time: GTC, IOC, FOK

Each order can have one of three time-in-force types:

• GTC (Good-Till-Canceled) — The order remains active until manually canceled or filled, regardless of how long it takes.
• IOC (Immediate-or-Cancel) — Fill what can be immediately; cancel the rest. Market orders on the platform operate on this principle.
• FOK (Fill-or-Kill) — Either the entire order is filled immediately, or it is canceled entirely. Full fill or nothing.

Advanced Algorithmic Orders

TWAP (Time-Weighted Average Price)

TWAP splits a large order into smaller parts and executes them evenly over a chosen time interval. This helps achieve a price close to the average market price during that period, minimizing market impact.

Scaled Order

A scaled order places multiple limit orders within a certain price range with gradually increasing or decreasing prices. This also helps avoid slippage when executing large volumes.

Chase Order — Follow-the-market limit order

This order is placed at the best bid or ask price and dynamically follows the market price until filled or until it reaches a maximum chase distance. It’s suitable for those who want to execute a large order as a limit order but don’t want to wait.

Practical Recommendations for Choosing the Right Order

An order is a strategic choice. Here’s how to decide:

• If you need quick entry/exit and price is not critical — use a market order.
• If you want control over the price and are willing to wait — choose a limit order.
• If you want automatic trading under certain conditions — use conditional orders.
• For large volumes — consider iceberg, TWAP, or scaled orders.
• To protect profits and minimize losses — combine TP/SL orders with your main position.

Conclusion

An order is not just a command on the market — it’s a strategic tool that requires understanding. Mastering basic types (market, limit, conditional) provides a strong foundation. Then, by exploring specialized risk management orders and algorithmic tools, you can adapt your approach to any market condition.

Remember: choosing the right order is not a matter of luck but of understanding the market and your trading strategy. Start simple, gradually add complex tools, and your trading will become more effective and manageable.