Different Order Types in Spot Trading

Binance TH offers different order types for you to use in Spot Trading. You can use them to set your trading strategies and trade efficiently. Let’s look at the common order types in Binance TH Spot Trading.

What is a limit order?

A limit order is an order that you place on the order book with a specific limit price. It will not be executed immediately like a market order. Instead, the limit order will only be executed if the market price reaches your limit price (or better). Therefore, you may use limit orders to buy at a lower price or sell at a higher price than the current market price.

For example, you place a buy limit order for 1 BTC at $60,000, and the current BTC price is 50,000. Your limit order will be filled immediately at $50,000, as it is a better price than the one you set ($60,000).

Similarly, if you place a sell limit order for 1 BTC at $40,000 and the current BTC price is $50,000. The order will be filled immediately at $50,000 because it is a better price than $40,000.

To learn more about limit orders, please refer to What Is a Limit Order?.

What is a market order ?

A market order lets you instantly place buy or sell orders for an asset at the best current market price available.

You can select [Amount] or [Total] to place a buy or sell market order. For example, you can enter the amount directly if you want to buy a certain quantity of BTC. But if you want to buy BTC with a certain amount of funds, such as 10,000 USDT, you can use [Total] to place the buy order.

For more information on how to place a market order, please refer to What is Market Order and How to Place It.

What is a stop-limit order?

A stop-limit order has a stop price and a limit price. You can set the minimum amount of profit you’re happy to take or the maximum you’re willing to spend or lose on a trade. A limit order will be placed automatically when the trigger price is reached.

Stop-limit orders are good tools for limiting the losses that may incur in a trade. For example, BTC is trading at $40,000, and you set up a stop-limit order at a stop price of $39,500 and a limit price of $39,000. A limit order at $39,000 will be placed when the price drops from $40,000 to $39,500.

To learn more about stop-limit orders, please refer to What Is a Stop-Limit Order?.