Understanding the various order types available in trading is essential for building a robust and flexible strategy. Whether you're entering or exiting positions, managing risk, or capitalizing on market movements, choosing the right order type can significantly impact your success. This guide breaks down each major order type, explains how to use it effectively, and highlights its benefits—helping both beginners and experienced traders make informed decisions.
Market Order: Fast Execution at Current Prices
A Market Order executes immediately at the best available price in the market. It's the simplest and fastest way to buy or sell an asset, making it ideal when timing is more important than price precision.
How to Place a Market Order
- Select Market Order from the order type dropdown
- Enter the amount you wish to buy or sell
- Confirm the transaction
Why Use a Market Order?
- Ensures quick execution
- Best suited for highly liquid markets where price slippage is minimal
👉 Discover how fast execution can improve your trading outcomes.
While convenient, market orders don’t guarantee the final fill price—especially in fast-moving or illiquid markets. Traders should be cautious during high volatility periods.
Limit Order: Control Over Entry and Exit Prices
A Limit Order allows you to set a specific price at which you’re willing to buy or sell. The trade will only execute at your specified price—or better—giving you greater control over your entry and exit points.
How to Place a Limit Order
- Choose Limit Order from the order options
- Input your desired price and quantity
- Confirm the order
Why Use a Limit Order?
- Full control over execution price
- Reduces the risk of unfavorable fills
- Particularly effective in less volatile or predictable markets
This order type is ideal if you’re aiming to buy below market value or sell above it. However, there’s no guarantee of execution if the market doesn’t reach your set price.
Take Profit / Stop Loss (TP/SL): Automate Risk Management
The TP/SL (Take Profit / Stop Loss) order helps automate profit-taking and loss-limiting strategies. When the market hits your predefined trigger price, a market or limit order is placed to close part or all of your position.
How to Set a TP/SL Order
- Select TP/SL and choose between Conditional or OCO (One-Cancels-the-Other) mode
- Define your take profit and stop loss levels
- Confirm to activate
Why Use TP/SL Orders?
- Lock in profits automatically
- Limit potential losses without constant monitoring
- Highly beneficial in volatile markets
These orders are foundational for disciplined trading, removing emotion from decision-making and ensuring consistent risk management.
Advanced Limit Orders: Precision Tools for Sophisticated Traders
For traders seeking more granular control, advanced limit orders offer enhanced execution logic. These include Post Only, Fill or Kill, and Immediate or Cancel—each designed for specific market conditions and trading goals.
i) Post Only
A Post Only order ensures your trade is placed as a maker (adding liquidity), not a taker. If it would execute immediately, it’s canceled instead.
How to Use Post Only
- Select Advanced Limit Order > Post Only
- Set your limit price
- Confirm
Benefits
- Avoids paying taker fees
- Maintains maker status for fee discounts
- Useful in volatile environments where slippage risks are high
👉 Learn how optimizing fees can boost long-term returns.
ii) Fill or Kill (FOK)
A Fill or Kill order demands full execution upon placement—or cancellation. Partial fills are not allowed.
How to Use Fill or Kill
- Choose Advanced Limit Order > Fill or Kill
- Enter price and quantity
- Confirm
Benefits
- Guarantees complete execution or none at all
- Ideal for large orders where partial fills could disrupt strategy
- Effective in fast-moving markets requiring immediate action
iii) Immediate or Cancel (IOC)
An Immediate or Cancel order executes whatever portion can be filled instantly; any unfilled part is canceled.
How to Use Immediate or Cancel
- Select Advanced Limit Order > Immediate or Cancel
- Set price and amount
- Confirm
Benefits
- Captures available liquidity immediately
- Prevents lingering orders from affecting future decisions
- Great for traders needing rapid execution with flexibility
Trailing Stop: Protect Gains While Letting Profits Run
A Trailing Stop dynamically follows the market price by a fixed amount (in dollars or percentage). It locks in profits by closing the position only when the price reverses beyond your set threshold.
How to Set a Trailing Stop
- Select Trailing Stop from order types
- Choose between constant value or percentage-based trailing
- Confirm the order
Why Use a Trailing Stop?
- Automatically protects gains during strong trends
- Allows winning trades to continue while minimizing downside risk
- Eliminates the need for constant manual adjustments
This tool is especially powerful in trending markets, letting traders ride momentum safely.
Trigger Order: Execute Based on Market Conditions
A Trigger Order activates a market or limit order once a specified price level is reached. You can base the trigger on last price, mark price, or index price—offering flexibility across different trading scenarios.
How to Place a Trigger Order
- Select Trigger Order
- Set your target trigger price
- Choose whether the resulting order is market or limit
- Confirm
Why Use a Trigger Order?
- Automates entries and exits at key levels
- Helps enforce trading plans without emotional interference
- Enables proactive protection of profits or limitation of losses
Ideal for breakout strategies or hedging positions ahead of news events.
Scaled Order (Futures Only): Gradual Position Building
Available exclusively in futures trading, a Scaled Order splits a large position into multiple smaller limit orders across a defined price range.
How to Use a Scaled Order
- Go to the futures trading interface
- Select Scaled Order
- Define your price range and number of sub-orders
- Confirm
Why Use a Scaled Order?
- Smoothly builds or reduces exposure over time
- Reduces market impact from large trades
- Maximizes returns by capturing incremental price movements
Perfect for dollar-cost averaging into volatile assets or exiting large positions strategically.
Frequently Asked Questions (FAQ)
Q: What’s the difference between a limit order and a market order?
A: A market order executes instantly at the current market price, while a limit order only executes at your specified price or better—but may not fill at all.
Q: When should I use stop-loss orders?
A: Use stop-loss orders whenever you want to limit potential losses on a trade, especially in volatile markets where prices can move rapidly.
Q: Can trailing stops work in sideways markets?
A: They’re less effective in ranging markets due to frequent false reversals. Best used in clear upward or downward trends.
Q: Are advanced order types available on all exchanges?
A: Not all platforms support advanced types like Fill or Kill or Scaled Orders. Check your exchange’s features before relying on them.
Q: Do trigger orders cost more?
A: No, trigger orders themselves don’t incur extra fees—the resulting market or limit order follows standard fee rules.
Q: Is a Post Only order always guaranteed to post?
A: No—if it would immediately match existing orders, it gets canceled to maintain maker status.
Core Keywords: market order, limit order, stop loss, take profit, trailing stop, trigger order, advanced limit orders, futures trading
👉 Start applying these powerful order types in real-time with advanced trading tools.