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Order Types Meaning

The different instructions a trader can give to an exchange. The most basic are Market Orders (buy now at any price) and Limit Orders (buy only at this specific price).

Advanced order types include Stop-Loss (sell if price drops to X), Trailing Stop (follow the price up, but sell if it drops by Y%), and Iceberg Orders (hide the true size of a large order by only showing a small tip to the public). Smart order types allow traders to execute strategies passively.

They are essential tools for risk management, allowing a trader to define their exit points before they even enter the trade.

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