Binance offers different order types for you to use in Spot Trading. You can use them to set your trading strategies and trade efficiently.
A market order is executed at the current market price as quickly as possible when you place the order. You can use it to place both buy and sell orders.
You can select [Amount] or [Total] to place a buy or sell market order. For example, if you want to buy a certain quantity of BTC, you can enter the amount directly. 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.
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.
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. When the trigger price is reached, a limit order will be placed automatically.
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.