1. Market Order
A Market Order is a buy or sell order to be executed immediately at the best available current market price, meaning that you pay the fees as a market taker. Market orders are often used when the certainty of execution is prioritized over the price at which the order executes. When placing this order, the trader prefers the trade to happen immediately at the current price.
Let’s say you want to buy 3 BTC at the current market price. The cheapest limit sell order available will not be sufficient to fill your entire market buy order, so your order will automatically match the following limit sell orders, working its way up the order book until it is completed. This is called slippage and is the reason why you pay higher prices and higher fees (because you are acting as a market taker).
2. Stop Order
A stop order is an order to buy or sell that becomes active only after a specified price level (the “stop level”) has been reached. Stop orders work in the opposite direction as limit orders: A buy stop order is placed above the market, and a sell stop order is placed below the market. Once the stop level has been reached, the order is automatically converted to a market or limit order (depending on the type of order was specified). In this sense, a stop order acts as a trigger for the market or limit order.
If the current market price is 10,000 USD and you are in a long position, you might want to sell BTC if the price reaches 9,500 USD to cut your losses if the market goes down. A stop sell at 9,500 USD will be used in this case. If shorting, you would place a stop buy above the current price to cut your losses if the market goes up. If the current market price is 10,000 USD and you are in a short position, you might want to buy if the price reaches 10,500 USD. A stop buy at 10,500 USD will be used in this case.
3. Limit Order
A limit order is an order placed to buy or sell at a specified price or better; because a limit order is not a market order, it may not be executed if the price set by the trader cannot be met during the period of time in which the order is left open. Limit orders also allow a trader to limit the length of time an order can be outstanding before being canceled. After placing the limit order becomes to market depth as a bid price (for “buy limit” orders) or as an ask price (for “sell limit” orders) and could be filled by opposite order from different market participant.
If you wanted to purchase BTC at 10,000 USD or less , you can set a limit order that won't be filled unless the price you specified becomes available. However, you cannot set a plain limit order to buy BTC above the market price because a better price is already available.
Similarly, you can set a limit order to sell BTC once a specific price is available. Imagine that you own BTC at the price of 10,000 USD and you want to sell if the price gets to 11,000 USD. A limit order can be set at 11,000 USD that will only be filled at that price or better. You cannot set a limit order to sell below the current market price because there are better prices available.
4. Stop-Limit Order
Once the stop of a stop limit order is triggered, the limit order is automatically added to the book with price of limit level. If the market price does not reach the stop price, the order will not be triggered and will remain unfilled. If the stop is triggered and the limit order is placed, but the market price does not reach the limit price, the order will also go unfilled. If the market price is moving quickly enough and gaps above the limit price, there may not be enough matching bids or offers available between your stop and limit to fulfill the order.
If you would like to buy BTC once the market price reaches 10,000 USD, but not pay more than 10,100 USD, then a stop price of 10,000 USD and limit price of 10,100 USD will be specified at the same time using a stop-limit order. If the market price reaches 10,000 USD, the order is triggered and will match the best available asks up to 10,100 USD. If the market price moves to 10,101 USD or above, then the order may go partially unfilled due to the limit price.
5. Trailing Stop Order
A trailing stop order is a stop order that can be set at a defined amount away from a current market price. A trader places a trailing stop for selling below the current market price; for buying, it sets above the current price. A trailing stop orders are designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the trader’s favor but closes the trade if the price changes direction by a specified amount.
You are in a long position, and the current BTC market price is 10,000 USD after a quick rise from 9,000 USD, so you would like to set a trailing stop with a price distance of 500 USD. This will create a Stop sell order for 9,500 USD. Unlike the usual Stop order, if the market price continues to rise to 11,000 USD, then the Trailing Stop will constantly grow 500 USD lower than 10,500 USD.
6. Trailing Stop Future Order
Future order activates a trailing stop order, that can be set at a defined amount away from a current market price, at the moment market price reaches the specified price level.
You are in a long position and the current market price of BTC is 10,000 USD. You would like to sell BTC when the price reaches at least 11,000 USD using a Trailing Stop order. The market is volatile and you think that the price may fall under current 10,000 USD before going up to 11,000 USD. Therefore a usual Trailing Stop order would close too early. With Trailing Stop Future order the Trailing Stop will be activated only if the price reaches 11,000 USD. It may come in handy if you don’t want to lose a moment while being offline.
7. Scaled Order
The scaled order tool is an algorithm designed to allow traders to spend less time entering orders and more time focusing on their strategy. The algorithm automatically creates multiple limit orders across a user-determined price range. This tool also provides control over the diversity and distribution of orders within the price range.
You would like to buy 1000 BTC at the lowest price. However with such a large block of coins your trade could result in a sharp spike of BTC price. The current market price for BTC is 10,000 USD. Therefore instead of placing one large order, you’ll place a Scaled order – 10 orders with a size of 100 BTC each with a scale price increment of 400 USD. If the market price reaches 10,000 USD, then 100 BTC will be bought. BTC’s price must then reach 9,600 USD before the next 100 BTC are bought. This continues until the order is canceled or the price of BTC goes to the point when all of the orders would have been executed.