SideBySideCrypto
Trading December 18, 2025

Crypto Exchange Order Types Explained

Market, limit, stop-loss, OCO—every order type demystified. Learn which to use and when for smarter trading.

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Quick Summary

Limit orders are best for most trades—you set the price and pay lower fees. Market orders are for when speed matters more than price. Stop-loss orders protect against big drops. Advanced orders like OCO combine multiple strategies.

Order Types Overview

Order Type Execution Price Control Best For
Market Instant ❌ None Speed priority
Limit When price hits target ✅ Full Most trades
Stop-Loss When price drops to trigger ⚠️ Partial Downside protection
Stop-Limit Limit order after trigger ✅ Full Controlled exits
OCO One cancels other ✅ Full Take-profit + stop-loss

Order Types Explained

Market Order

A market order executes immediately at the best available price. You're saying "buy/sell now at whatever price is available."

Example: BTC is at $85,000. You place a market buy for $1,000. Your order fills instantly at ~$85,000 (plus any slippage).

Pros:

Guaranteed execution, instant

Cons:

Higher fees (taker), slippage risk

Recommended

Limit Order

A limit order only executes at your specified price or better. You're saying "only buy if price drops to X" or "only sell if price rises to Y."

Example: BTC is at $85,000. You place a limit buy at $83,000. Your order waits until BTC drops to $83,000, then fills. If BTC never drops that low, your order never executes.

Pros:

Price control, lower fees (maker)

Cons:

May not execute, requires patience

Stop-Loss Order

A stop-loss triggers a market sell when price falls to your stop price. It's insurance against big drops—"if BTC falls below X, sell everything."

Example: You bought BTC at $85,000. You set a stop-loss at $80,000. If BTC drops to $80,000, a market sell triggers automatically, limiting your loss to ~$5,000.

Pros:

Automatic loss protection, peace of mind

Cons:

Slippage in fast markets, can trigger on wicks

Stop-Limit Order

Combines stop trigger with limit execution. When stop price is hit, a limit order is placed instead of a market order. More control, but might not fill in crashes.

Example: Stop price: $80,000. Limit price: $79,500. When BTC hits $80,000, a limit sell at $79,500 is created. You avoid selling below $79,500, but if price crashes through both levels, your order might not fill.

Pros:

Price floor guaranteed

Cons:

May not execute in flash crashes

OCO (One-Cancels-Other)

Two orders linked together—when one executes, the other automatically cancels. Perfect for setting both take-profit and stop-loss simultaneously.

Example: You bought BTC at $85,000. You create an OCO with: (1) Limit sell at $95,000 (take profit), and (2) Stop-loss at $80,000 (cut losses). Whichever triggers first executes, and the other cancels.

Pros:

Complete trade management, set and forget

Cons:

Not available on all exchanges

Order Type Availability by Exchange

Exchange Market Limit Stop Stop-Limit OCO
Kraken ✓ ✓ ✓ ✓ ✓
Coinbase Advanced ✓ ✓ ✓ ✓ ✗
Gemini ✓ ✓ ✓ ✓ ✗
Binance.US ✓ ✓ ✓ ✓ ✓
Crypto.com ✓ ✓ ✓ ✓ ✓

When to Use Each Order Type

Market

Fast-moving markets, news-driven trades, when you need to exit NOW regardless of price

Limit

Regular buys/sells, targeting specific price levels, reducing fees with maker orders

Stop-Loss

Protecting profits, limiting downside, managing risk while away from screens

OCO

Complete trade plans—profit target + stop loss in one setup

Frequently Asked Questions

What's the difference between maker and taker fees? +
Maker orders add liquidity (limit orders that don't fill immediately) and pay lower fees. Taker orders remove liquidity (market orders or limit orders that fill instantly) and pay higher fees.
Can stop-losses trigger on false dips? +
Yes, "stop hunts" and flash wicks can trigger stop-losses before price recovers. Set stops at technically significant levels, not arbitrary percentages. Consider stop-limit orders for more control.
Should beginners use market or limit orders? +
Start with limit orders. They teach you to think about price levels and save money on fees. Market orders are fine for small amounts where the convenience outweighs the ~0.1% extra cost.
Do limit orders expire? +
By default, most exchanges keep limit orders open until filled or cancelled (GTC - Good Till Cancelled). You can also set orders to expire at end of day or a specific time on some platforms.

The Bottom Line

Limit orders should be your default—better prices and lower fees. Use market orders only when speed is critical. Set stop-losses to protect against major drawdowns. Kraken and Binance.US have the most advanced order types including OCO for complete trade management.

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