1. Market Order
A Market Order is the simplest type of order, commonly used when you want to execute a trade swiftly at the current market price. When you place a Market Order, it's executed immediately at the best available price (i.e. best bid price for a sell order or best ask price for a buy order), ensuring swift entry or exit from a position.
While Market Order offers the benefit of quick execution, it's important to remember that the ultimate execution price might experience minor shifts due to market volatility, a situation often referred to as slippage.
When you place a Market Order, you're essentially fulfilling or removing an existing order from the order book. In this role, you're considered as a market taker because you're extracting liquidity from the market, which results in a slightly higher fee known as the taker fee.
2. Limit Order
Limit Order provides greater control over the execution price. When you place a Limit Order, you specify the exact price at which you want to buy or sell an asset or contract. If the market reaches your specified price, your order will be executed at that order price or a better one if the order price is less favorable than the market price. However, there's a chance that your Limit Order might not be executed if the market doesn't reach your specified price.
3. Conditional Order
Conditional orders provide a layer of automation to your trading strategy. These orders are triggered and placed into the order book when certain conditions, such as a trigger price, are met. Traders can use different reference prices as the trigger basis, such as Last Traded Price, Mark Price, and Index Price.
There are two (2) types of Conditional Order: Conditional Market and Conditional Limit Order. Both work similarly with the Market and Limit Order mentioned above, but only when the preset reference price meets the trigger price, the system will trigger the Market and Limit order placement.