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FAQ
What Are Spot Order Types
Coincatch
2025-06-25 12:10
CoinCatch provides a wide array of order types to cater to diverse trading strategies and preferences. Understanding these options is key to executing trades efficiently, whether you’re a beginner or an advanced trader. Here’s a breakdown of the order types available on CoinCatch, complete with practical examples to clarify their use:
Market Orders
Market orders prioritize speed and certainty, executing immediately at the best available market price. This type of order is ideal when immediate execution is more important than the price.
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Example: If Bitcoin (BTC) is trading at $90,000, placing a market buy order will purchase BTC at the best available price, such as $90,005 or $90,010, depending on market liquidity.
Limit Orders
Limit orders allow traders to set a specific price at which they wish to buy or sell an asset. The order is only executed when the market reaches the desired price or better.
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Example: If BTC is currently at $90,000, placing a buy limit order at $89,500 ensures the order is only filled if the price drops to $89,500 or below.
Stop-Limit Orders
A stop-limit order combines a stop price (trigger) and a limit price. Once the stop price is reached, a limit order is automatically placed at the specified limit price.
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Example: If you hold BTC at $90,000, you could set a stop-limit order with a stop price of $88,000 and a limit price of $87,800. If the price drops to $88,000, the system places a sell limit order at $87,800 to manage potential losses.
Take Profit Orders
Take profit orders automatically close a position once a predefined profit target is reached. This helps lock in gains without constant monitoring.
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Example: If you buy BTC at $85,000, setting a take profit order at $95,000 ensures your position closes once the price hits $95,000, securing your profit.
Trailing Stop Orders
Trailing stop orders adjust dynamically with market fluctuations. The stop price follows the market price at a set distance, locking in profits as the price moves favorably.
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Example: If BTC rises from $90,000 to $95,000, a trailing stop order set at $2,000 below the market price will adjust the stop price to $93,000. If the market reverses to $93,000, the order is executed, preserving gains.
Trigger Order:
When the market price reaches the trigger price, an order will be automatically placed according to the configured price and quantity.
One-Cancels-the-Other (OCO) Order:
A one-cancels-the-other (OCO) order is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled.
Notes:
1. No assets will be frozen for your untriggered stop orders.
2. When placing a limit or stop order, you can choose any of the following methods to make your order effective: Immediate or Cancel (IOC), and Fill or Kill (FOK). For more details, please refer to Introduction to Spot Execution Types.
3. Please note that your stop orders may not be triggered or executed due to factors such as severe market fluctuations, insufficient funds, system issues, and other reasons. For more information, please refer to your [Spot Order History].
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CoinCatch Team