A trader's activity consists of daily transactions. They buy and sell cryptocurrency assets by placing orders in the order book at a specific price. This procedure directly relates to the order, which is a very basic concept. Every trader should know what it is and what types of orders are found on cryptocurrency exchanges.

The Concept of an Exchange Order

When cryptocurrency reaches the desired exchange rate — the order is executed, which is considered the closing of an exchange transaction. The trading terminal only requires the trader to fill in a few fields — everything else is performed by the exchange, as cryptocurrency trading is maximally automated.

Market Orders and Their Types

This type of order is suitable for instant transactions; you only need to consider the commission charged by the exchange.

Limit Orders for Buying and Selling

Such orders have the same subtypes as market orders, but their working mechanism differs. A limit order involves a delayed transaction execution.

Stop-Loss Orders

The order may not execute, so it is activated only when a certain price threshold is reached. Stop-loss orders are insurance against losses. Take-profit orders work by a similar mechanism.

OCO Orders

For full understanding, an example can be provided: bitcoin is trading at $40,000, an OCO order will allow you to buy coins when the price reaches $39,000, or sell the asset at $41,000. When either price is reached, the order is executed, and the second will be automatically canceled.