Order Types In Cryptocurrency Trading (Part-2)

As we've seen three basic order types of trading in my previous article i.e Market order, IOC (Immediate or Cancel) and a very popular Limit order. Hope you've enjoyed that article and waiting for this one. We'll go through some other order types in this article.

So let's dive in...!!

Fill Or Kill (FOK) Order

Yesterday we've seen a IOC (immediate or cancel) order, FOK is similar to that order type but with a little difference.

In case of IOC your order will get filled completely or partially immediately or get cancelled but in case of FOK order, the order is placed in a manner that your order has to be 'completly' filled immediately or gets cancelled, there's no chance for partial fulfillment of order. This type of order is used by 'Whales' 🐋 i.e high volume traders.

Stop Loss (Limit & Market)

Now this is another mostly used order type by traders and also the most important one by the risk management point of view.

If creating stop loss order for buying then your order will get sent when the market price exceeds your triggered price. On the other hand if you're using this order for selling purpose then your order will get sent when the market price drops below your triggered price.

Reserve (Iceberg)

Now this is something new for beginners or even for nonprofessional but frequent traders. This is bit complicated but still I'll to explain it in easy way.

So a Reserve order is the type of order where the size is not mentioned. Now there's another type of order which shares this feature but different than Iceberg. Orders, where the liquidity is not displayed are called 'Hidden Orders' whereas in case of Iceberg orders, the liquidity is greater than zero and higher than the full order size. In simplest words, Reserve orders are the large single orders that are divided into multiple smaller limit order to hide the actual order amount.

(Don't worry if you didn't understand this order, it's rarely used and used by high volume traders/trading institutions, who trades in millions, not for individual traders like us)

So guys this is it for trading order types. Hope you've understood them and you're getting into trading.

Checkout my first previous article about basic orders : Basic Orders In Cryptocurrency Trading

Hope you enjoyed this article and found something informative. Don't forget to share your feedback about this article or the improvements required. It helps me to improve my skills.

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Thanks for Your Time & Appreciation...!!