Limit order (Limit order)
The most popular and widely used trading order on the Binance exchange market is the limit order.
A Limit order is an order to buy or sell that you place in the order book with a predetermined price limit.
Depending on price movement, a limit order placed by the trader in the order book may be executed immediately or queued for execution.Limit orders are entirely private, but the price and amount are publicly available. Thus, a limit order will only be executed if the market price reaches the limit price you specify, and only then will the limit order be activated.
Limit orders can be deleted by traders before they are executed.
Benefits: Your order will be completed at the price you specify.Benefits: Your order will be completed at the price you specify.
Disadvantages: There is no guarantee that the order will be executed. “Limit order” is a passive order that may not be executed completely or only partially if there are better offers.Disadvantages: There is no guarantee that the order will be executed. “Limit order” is a passive order that may not be executed completely or only partially if there are better offers.
Professional traders place limit orders on 95% of their trades. Most scalpers trade with limit orders only; they may not use other orders at all. To minimize losses, we strongly recommend that beginner traders use “stop orders” (stop loss).
Market order (Market Order)
The market order is the easiest, but also one of the riskiest for beginners.
A Market Order is a type of transaction that allows you to immediately buy or sell at the best price. Your order will execute quickly and with little slippage if there are limit orders from other participants in the order book and if the trading instrument has significant 24-hour volume.
Market orders guarantee a trade, but the trader cannot execute it at the current price. Although a market order will execute at the best price, that price may change briefly.
Advantages: If there are trade orders in the order book, the market order will be safely executed.
Disadvantages:The slippage process is the biggest disadvantage of the market order.Advantages: If there are trade orders in the order book, the market order will be safely executed.
Disadvantages:The slippage process is the biggest disadvantage of the market order.
Slippage occurs when a trade closes at a less favorable price, even if the order book offers the best price at the time of placing the order.
When a trader uses a large number of instruments, slippage occurs most often. In this case, the market order will be filled at different prices, using the best bids in the order book. When the main traders have filled their available trading slots in the order book, overall slippage is the lowest in a turbulent market.
Stop-limit order (Stop Limit Order)
A conditional order with a predetermined duration, known as a stop limit, is executed at a certain price after reaching a predetermined stop price. When the stop price is reached, a purchase or sale will be made at the limit price you specify or at a price that is higher.
Market stop order (Stop Market Order)
A stop market order uses a stop price to initiate a transaction, just like a stop limit order. Instead of triggering a market order, a stop price is reached.