Market order, limit order and stop order: A complete comparison guide

The early stages of your cryptocurrency trading career are crucial, and there’s nothing more important for a novice trader than knowing the key differences between the basic order types. Market orders, limit orders and stop orders are the three basic order types used in crypto trading. Each one works differently, and depends upon your trading goals: entering or exiting a position immediately, waiting for a better price orprotecting yourself from losses.

The type of order you choose determines whether your trade takes place immediately, executes only at a specific price, or is triggered under certain conditions. Using the incorrect order can lead to missed opportunities or unexpected outcomes, especially in fast-moving or volatile markets such as cryptocurrency.

In this article, we break down each basic order type with clear examples to help you understand when and why each one should be used.

Key Takeaways:

• There are three basic order types used in crypto trading — market, limit and stop.

• A market order buys or sells immediately at the current price; a limit order buys or sells only at a specified price or better; and a stop order triggers a request to buy or sell once the price reaches a set level.

• Choosing the right order type helps you manage risk, control trade execution and avoid unwanted price slippage.