Order Types: Market, Limit, Stops and More
Pick the right order type and time-in-force for entries, exits and protection.
Market orders
A market order fills immediately at the best available prices. You get certainty of execution, not of price. Use it when getting in or out now matters more than a few ticks.
Limit orders
A limit order fills only at your price or better. A buy limit below the market waits until price comes down to it. You get price certainty, not execution certainty — the market may never reach you.
Time in force
- GTC (Good-Til-Cancelled): rests on the book until filled or you cancel it.
- IOC (Immediate-Or-Cancel): fills whatever it can right now; the rest is cancelled.
- ALO (Add-Liquidity-Only, "post only"): only rests on the book as a maker order; if it would fill immediately, it is cancelled instead.
Take-profit and stop-loss
TP and SL are trigger orders attached to a position. When the mark price reaches the trigger, a reduce-only order closes the position. Take-profit locks in gains at a target; stop-loss caps a loss at a level you chose calmly, before the trade.
| Entry | Long ETH at $3,000 |
|---|---|
| Stop-loss | $2,910 (−3%) |
| Take-profit | $3,180 (+6%) |
| Risk : reward | 1 : 2 |
Set both at entry. The trade is now managed even if you walk away from the screen.
Reduce-only
A reduce-only order can only decrease an existing position. Use it for every exit, so a closing order that fills twice cannot accidentally open a position in the opposite direction.
Key takeaways
- Market = certain execution, uncertain price. Limit = certain price, uncertain execution.
- GTC rests, IOC fills now or cancels, ALO only ever adds liquidity (maker).
- Attach a stop-loss and take-profit at entry; exit with reduce-only orders.