HomeLearn › Order Types Explained

Order Types Explained

Market, limit, stop, stop-limit, trailing and take-profit — what each order does, when to use it, and how it changes the fee you pay.

Ready to put this into practice?Trade on Bybit — deep liquidity, low fees, up to a $30,000 welcome bonus.Open Bybit account →

Why order type matters

The order you choose decides two things: whether you fill at all, and what fee you pay. Getting this right is one of the cheapest edges in trading — market orders are convenient but cost you the spread and the higher taker fee on every trade.

Market order

Fills immediately at the best available price. Use it when getting in now matters more than the exact price. The cost: you pay the taker fee and accept slippage — on a thin book, a large market order can move the price against you as it fills.

Limit order

An order to buy or sell at a specific price or better. It rests on the order book until price reaches it — so it may never fill, but you control your price and usually pay the lower maker fee. This is the default for patient entries and exits.

Stop / stop-market

A trigger: when price crosses a level, it fires a market order. Used for stop-losses (exit if the trade goes wrong) and breakout entries. Because it becomes a market order, it can slip in fast moves — which is exactly when stops matter most.

Stop-loss / take-profit calc →

Stop-limit

A stop that fires a limit order instead of a market order — you avoid slippage, but risk not filling if price blows through your limit. A tool for calm exits, not for guaranteed protection in a crash.

Trailing stop

A stop that follows price at a fixed distance, locking in more profit as the trade moves your way and closing you out when it reverses by that distance. It automates "let winners run, cut them when they turn."

Take-profit

A resting order that closes your position at a target to bank a gain automatically — the mirror image of a stop-loss. Setting both when you enter removes emotion from the exit.

Risk:reward calc →Back to Learn →

Continue learning

Long vs Short Explained →Risk Management 101 →Trading Strategies Explained →

Frequently Asked Questions

What is the difference between a market and a limit order?

A market order fills immediately at the best available price but pays the taker fee and risks slippage. A limit order fills only at your chosen price or better, may not fill at all, and usually pays the lower maker fee.

What is a stop-loss order?

A stop-loss triggers an order to close your position when price hits a level you set, capping your loss. A plain stop fires a market order (fast but can slip); a stop-limit fires a limit order (no slippage but may not fill).

What is a trailing stop?

A trailing stop follows the price at a fixed distance, moving up as the trade profits and closing you out when price reverses by that distance — locking in gains without you watching the chart.

⚠️ Educational only — not financial advice. Leverage trading can lose your entire deposit.