Order Types and Tick Sizes

Order

Order types define the instructions given to an exchange to execute a trade, impacting price discovery and market participation. Limit orders specify a maximum buy or minimum sell price, ensuring execution only at or better than the stated level, while market orders prioritize immediate execution at the best available price, potentially incurring slippage. Stop-loss orders trigger a market or limit order when a specified price is reached, managing downside risk, and are crucial for automated trading strategies within volatile cryptocurrency markets.