The market order is executed at the best available market price. Traders do not need to set a price, which allows the order to be executed immediately. Although the Market Order guarantees the execution of the order, the execution price cannot be guaranteed. This is due to consideration of Price Impact and Slippage Tolerance in addition to the execution price when executing via AMM. When traders need to enter or exit a volatile, fast-moving market, market orders are generally used.
Limit order allows traders to set the order price and the order will be executed at the order price or a price better than the order price.
Alice sets a limit buy for 1 BTC at $50,000 while it is trading at $51,000. Due to the market situation, the price drops from $51,000 to $49,950, so her order can be executed. For Alice, the execution price will end up between $50,000 - $49,950.
Limit-Buycannot be placed above the Mark price.
Limit-Sell cannot be placed below the Mark price.
The purpose of using Take Profit orders is that traders want to secure their profits at a certain price target.
Example Take Profit
Bob already has a long position of 10 ETH and just wants to take profits, so he sets the price of the Take Profit order to $3,500. The bots will only execute the order at the specified price or at a price better than the order price. So, in this example, at a price of $3,500 or above.
Take Profit-Orderfor a long position cannot be placed below the Mark price.
Take Profit-Orderfor a short position cannot be placed above the Mark price.
The purpose of using Stop Loss is that traders want to close their position in case of a price loss in order to limit potential losses. Conversely to Take Profit order and Limit order, Stop Loss is executed at the order price or at a price worse than the order price.
Example Stop Loss
Bob opened an ETH long position with an entry price of $2,000 and ETH is currently trading at $2,200. He wants to protect his position by placing a stop order at an trigger price of $1,950. The bots will only execute the stop order at the specified price or at a price worse than the trigger price. So in this example if the price is at $1,950 or below.
Stop Loss-Orderfor a long position cannot be placed above the Mark price.
Stop Loss-Order for a short position cannot be placed below the Mark price.
Close Market can be used to close a position partially or completely. If you click on "Market" in the "Close" column of an active position.
At Close Market you can enter the desired amount to close a part or the whole position directly by clicking on the button.