How Market, Limit, Trigger, and Conditional Orders Work
Summary
This guide explains common spot and futures order types and the execution trade-offs they create. A market order seeks immediate execution at the best available price, which may differ from the displayed price in volatile conditions. A limit order specifies the acceptable price and may remain unfilled, while a trigger order submits a market or limit order after a chosen price condition is reached.
It also introduces maker and taker roles, noting that resting orders provide liquidity and immediately matched orders consume it. Conditional tools include take-profit and stop-loss orders, one-cancels-the-other pairs, and trailing stops; post-only orders are described as canceling if they would execute immediately. These mechanisms can shape entry and exit behavior and help manage exposure, but they do not guarantee execution at a target price or prevent losses. The fee figures and product availability are exchange-specific details from the guide and may change.
Key ideas
- Market orders prioritize execution speed and can fill at a different price during volatile conditions.
- Limit orders specify a price but may not execute.
- Trigger orders activate a market or limit order after a price condition is met.
- Maker orders add resting liquidity, while taker orders match immediately and remove liquidity.
- Stop-loss, take-profit, OCO, and trailing-stop conditions automate parts of trade management.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.