What is the difference between a limit order and a market order?

A market order executes immediately at the current market price. A limit order executes only when the price reaches your specified level. Limit orders give you more control over entry/exit price.

What is a stop-loss order and why should I use one?

A stop-loss order automatically sells your position if the price drops to a determined level. It's essential for risk management and limiting losses. Always define your stop-loss before entering a trade.

Order Types Master Guide — Execution Protocols

Visual representation of an order book

Basic Orders

EXECUTION LOGIC

Executes immediately at the best available price in the order book. Matches with existing Limit orders.

PRO USE CASE

Urgent entry/exit where speed is more important than price precision (e.g., stop-loss trigger or liquidating during a crash).

FEE IMPACT

Taker

VISIBILITY

Public

EXECUTION RISK

High Slippage. In thin books, large market orders can 'sweep' many levels, resulting in a much worse average price.

PRO TIP

Never use market orders for large positions in low-liquidity assets. You are gifting edge to the market makers.

Advanced Orders

Fee Mathematics

Maker vs Taker: Real Cost

Maker

Taker

ROLE	ACTION	FEE	IMPACT
Maker	Provides Liquidity	0.01% - 0.02%	Lower Fees
Taker	Removes Liquidity	0.04% - 0.06%	Higher Fees

Algos & Icebergs

Automation

PINE_SCRIPT_V5

// Precision Limit Entry

strategy.entry("Long", strategy.long, limit=lower_range, when=can_fill)

// Automated Exit

strategy.exit("TP", "Long", limit=target, stop=stop_loss)

Slippage & Liq

The Spread is your silent enemy. Executing market orders on thin books guarantees a significantly worse price than expected.

PRO SOLUTION

Divide your large orders into smaller chunks (Laddering).

PRO SOLUTION

Use 'Post-Only' to ensure you always act as a Maker.

Visual representation of an order book

Basic Orders

EXECUTION LOGIC

Executes immediately at the best available price in the order book. Matches with existing Limit orders.

PRO USE CASE

Urgent entry/exit where speed is more important than price precision (e.g., stop-loss trigger or liquidating during a crash).

FEE IMPACT

Taker

VISIBILITY

Public

EXECUTION RISK

High Slippage. In thin books, large market orders can 'sweep' many levels, resulting in a much worse average price.

PRO TIP

Never use market orders for large positions in low-liquidity assets. You are gifting edge to the market makers.

Advanced Orders

Fee Mathematics

Maker vs Taker: Real Cost

Maker

Taker

ROLE	ACTION	FEE	IMPACT
Maker	Provides Liquidity	0.01% - 0.02%	Lower Fees
Taker	Removes Liquidity	0.04% - 0.06%	Higher Fees

Algos & Icebergs

Automation

PINE_SCRIPT_V5

// Precision Limit Entry

strategy.entry("Long", strategy.long, limit=lower_range, when=can_fill)

// Automated Exit

strategy.exit("TP", "Long", limit=target, stop=stop_loss)

Slippage & Liq

The Spread is your silent enemy. Executing market orders on thin books guarantees a significantly worse price than expected.

PRO SOLUTION

Divide your large orders into smaller chunks (Laddering).

PRO SOLUTION

Use 'Post-Only' to ensure you always act as a Maker.

Execution
Mastery

Basic Orders

Market Order

Limit Order

Advanced Orders

Post-Only (Limit)

OCO (One-Cancels-the-Other)

Trailing Stop

Hidden Order

Fee Mathematics

Maker vs Taker: Real Cost

Algos & Icebergs

Iceberg Order

TWAP (Time Weighted Average Price)

POV (Percentage of Volume)

Automation

Slippage & Liq

Execution
Mastery

Basic Orders

Market Order

Limit Order

Advanced Orders

Post-Only (Limit)

OCO (One-Cancels-the-Other)

Trailing Stop

Hidden Order

Fee Mathematics

Maker vs Taker: Real Cost

Algos & Icebergs

Iceberg Order

TWAP (Time Weighted Average Price)

POV (Percentage of Volume)

Automation

Slippage & Liq