Types of orders
There are numerous types of orders on Binance (and other CEXs) but I’m going to limit myself to the most important ones that are also supported by Binance, such as the following:
- Market orders
- Limit orders
- Stop limit orders
- Stop market orders (futures only)
- One-Cancels-the-Other (OCO) orders (spot and margin only)
- Trailing stop orders
Let’s dive in!
Market orders
With market orders, you are buying at the current price, no matter what it is. A market order guarantees that the order gets executed because it will accept the price the token has at that moment. The following diagram shows how it works:
Figure 5.3 – A market order
Limit orders
Limit orders are instructions positioned in the order book that are only executed when the market price meets or surpasses the established limit price. You can use limit orders to purchase at a reduced price or sell at a higher price, contingent...
