There are many types of orders and they are good for different situations – in this article we will talk about them. The special types of orders specific to SkyRocket trade platform, such as Trailing Stop Loss, SkyRocket BUY, Skyrocket SELL can be found in other articles on the blog.

Basic orders available on Binance:

Market order – this is where we jump straight in or out of a trade at the current market price. This is where you may experience some slippage if the market is moving quickly or is not liquid enough – it is something to be aware of! It is also an order that guarantees execution at the available current market – in other words you will get the price that at certain moment when people want to sell the asset.

Limit order is one of the most used orders by traders – it allows to buy or sell an asset (in our case crypto) for a specific price. For example, if you wanted to purchase BTC for 10 000 USDT or less, you can set a limit order it won’t be filled unless the price comes to this level. In other words this order will only execute if the price of BTC is $10 k or lower.

A Stop-Limit order is an instruction to submit a buy or sell limit order when the given stop activation price is met. We can divide this order into 2 components: activation (often called stop) price and the limit price. When a trade has occurred at or through the activation price, the order enters the market as a limit order, which is an order to buy or sell at a specified price or better. At SkyRocket trade you can choose if stop-loss will be send to the exchange or will stay at the platform till the price is met.

Let’s take this situation – you feel like BTC/USDT price will rise today. You set a Stop Limit order and put 10 000 USDT price as an activation and 10 050 as limit. If within the time of price being between these two values order will not be filled you won’t sell the asset or just do it partially.
So Stop-Limit has an advantage – there is no price risk associated with a stop order where the execution price cannot be guaranteed. But there is a “price to pay” meaning that it exposes the investor to the situation where he can “miss the market”.

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