📍 Core Concept

Order Types

Understanding market, limit, stop, and advanced order types.

APOLLO ENCYCLOPEDIA

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What It Is

Order types are the instructions you give to your exchange about how to execute your trade. Choosing the right order type affects your fill price, execution certainty, fees, and overall trade management.

Market orders execute immediately at the best available price. You get certainty of execution but no control over price. Use when you need to get in or out NOW. Limit orders execute only at your specified price or better. You get price control but no guarantee of execution.

Stop orders trigger when price reaches a specified level, then execute as market or limit orders. Stop-market guarantees execution but may slip in fast markets. Stop-limit controls price but may not fill if price gaps through your level.

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Choosing the Right Order

For entries

Use limit orders to get favorable fills. Place them slightly inside the level you're targeting — if support is at $50,000, bid at $50,050 to increase fill probability.

For stop losses

Use stop-market in liquid assets for guaranteed exits. In illiquid assets, use stop-limit with a buffer (e.g., stop at $49,000, limit at $48,800) to avoid extreme slippage while still protecting capital.

For profit taking

Use limit orders at your predetermined targets. Scale out with multiple limit orders at different levels rather than one all-or-nothing exit.

💡Pro Tip

Apply this concept in combination with others. No single concept tells the whole story - confluence is key.

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