The 3 Buttons That Decide What Every Trade Costs You (Order Types Explained)
The 3 Buttons That Decide What Every Trade Costs You (Order Types Explained)
17 hours ago•Krown•@eckrown
YouTube33 min 17 sec
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Note: AI-generated summary based on third-party content. Not financial advice. Read more.
Quick Insights
  • For non-urgent Bitcoin (BTC) purchases, consider a limit order to control your entry price, but be prepared for it not to fill.
  • Before trading crypto, compare market-order speed with the potential spread, fees, and slippage; use extra care with large orders and less-liquid coins.
  • Treat stop-limit orders as risk-management tools, not guaranteed exits, since fast price moves can leave them unfilled.
  • Check your exchange’s current fees and order settings; the discussion provided no directional outlook or price target for BTC or Coinbase (COIN).
Detailed Analysis

Bitcoin (BTC)

  • Bitcoin was used to explain how order types affect trade execution. The speaker’s market examples—including a price around $80,000 and stop levels near $75,556—were hypothetical illustrations, not price targets or forecasts.
  • For recurring Bitcoin purchases, such as weekly dollar-cost averaging, the speaker suggested considering a limit order when there is no urgency. It lets a buyer set a price, but the order may not fill if Bitcoin never reaches it.
  • A stop-limit order can be used to trigger a potential exit if Bitcoin falls below a level chosen to invalidate a trade idea. The speaker illustrated this using a prior price low, while noting that the example was rudimentary.

Takeaways

  • For a non-urgent Bitcoin purchase, consider whether a limit order fits your plan; be prepared for the possibility that it will not execute.
  • If using a stop-limit to manage a position, understand that it can fail to fill if the price moves past the limit before the order executes. A stop order is not a guarantee that you will exit.
  • The transcript does not offer a directional outlook or a specific investment recommendation for Bitcoin.

Crypto Trading Costs and Order Types

  • The speaker contrasted three order types:
    • Market order: Executes promptly at the best available price, but may incur the spread, a higher taker fee, and slippage if the order is large relative to available liquidity.
    • Limit order: Sets the price at which you are willing to trade. It may receive a lower maker fee, but there is no guaranteed fill.
    • Stop-limit order: Activates a limit order once a chosen trigger price is reached. The trigger and limit prices can differ, but the trade may remain unfilled if the market moves through the limit too quickly.
  • The speaker said crypto exchanges often charge more for taker orders than maker orders, sometimes by several multiples. Fees and rules vary by exchange.
  • Slippage can be especially costly in thinly traded markets, including illiquid smaller cryptocurrencies. The speaker gave examples of large orders moving through multiple levels of the order book and of market orders filling materially away from the visible price.
  • The speaker described market orders as most useful when immediate execution matters, such as in an emergency, and cautioned against using them routinely when there is no urgency.
  • Post-only can help ensure a limit order rests on the book as a maker order, while good-till-canceled and immediate-or-cancel determine how long an order remains active or whether unfilled portions are canceled.

Takeaways

  • Before trading, compare the urgency of execution with the potential costs of the spread, fees, and slippage. A limit order may reduce costs, but can leave you without a fill.
  • For larger orders or less-liquid cryptocurrencies, pay particular attention to available order-book liquidity; the displayed price may not be the price for the entire order.
  • Review stop-limit settings carefully. A stop trigger does not guarantee execution at the limit price—or any execution at all.

Coinbase

  • Coinbase was the exchange used for the order-entry demonstrations. The speaker showed how market, limit, and stop-limit orders appear on the platform.
  • The episode also included a promotional claim that a referral link could provide discounts on Coinbase spot and derivatives trading fees. Those terms were presented by the speaker and may depend on the offer and account conditions.

Takeaways

  • Check the current fee schedule and order settings on the exchange you use; the transcript’s fee comparisons are not a substitute for checking your own account terms.
  • The Coinbase discussion concerned trading mechanics and fees, not Coinbase’s business outlook or its stock.
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Video Description
Market order vs limit order vs stop limit, explained by a former NYSE ARCA market maker - the three buttons and what each one really costs. All three placed live with real money on Coinbase, the maker fee discount, and the post-only switch almost nobody flips. Episode 9 of 10 — binge the full free series: https://www.youtube.com/playlist?list=PLPEz1q0esi3gEd4DMbaGwFf3uqwAY6vTU 📗 FREE: My Complete TA Ultimate Beginners Program → https://krown-trading.teachable.com/p/ta101 ⬛ Build Your Own AI Trading Agent For FREE — Full Tutorial → https://krown-trading.teachable.com/p/cpro 🟪 Unlock My Indicators & Programs → https://krown-trading.teachable.com/ 🔵 COINBASE: $250 Deposit Bonus + 80% Trading Fee Reduction → https://coinbase.com/aff/krown ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 🏔️ Join the Cave (Discord) → https://discord.gg/3PJDRbYw44 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ What you'll learn: what an order actually is (what, how much, at what price), the market order and the impatience tax - spread, taker fee, slippage - and when paying it is right (emergencies, not entries), the limit order - name your price, collect the maker discount, wait for the market to come to you - plus the queue and the no-promised-fill caveat, the stop limit - the stop price as tripwire and the limit price as the net, used as a stop loss and as a breakout entry, where stops actually go (episode four gives the spot, episode eight shows the pile to avoid), all three orders placed live with real money on Coinbase Advanced Trade, the money moment - same trade executed three ways with three different bills, and the pro switches: post-only (rejected live on camera) and time in force - GTC, good-til-time and IOC. Homework: swap ONE market order for a limit this week, and put a stop behind any unprotected position. TA FOUNDATIONS — the 10-part beginner series Candlesticks / Timeframes / Trend lines / Support and resistance / Volume / Moving averages / Ranges / Order flow / Order types / Risk management. New episode every Saturday. ABOUT THIS CHANNEL Eric Krown is a former NYSE ARCA options market maker with 15+ years of experience. This channel delivers daily Bitcoin and macro market analysis using a systematic five-layer framework: Trend, Volatility, Structure, Momentum, and Risk — the same methodology used on the trading floor. No hype. Data-driven analysis with proof of trade. 🔔 Subscribe free — the next one finds you: https://www.youtube.com/@ECKrown?sub_confirmation=1 #TechnicalAnalysis #Trading #Bitcoin CHAPTERS 0:00 Same idea. Three different bills. 0:10 The three buttons 1:59 What an order actually is 3:29 Button 1 - the market order 5:39 The impatience tax 7:58 Button 2 - the limit order 10:12 Button 3 - the stop limit 12:48 Live on Coinbase: all three, real money 19:39 Where stops go 23:52 The money moment: one idea, three bills 25:50 The pro switches: post-only + time in force 29:31 The right button, every time 31:00 Lock it in 31:59 Your homework DISCLOSURES General market commentary and education, published to the public on a regular schedule and not tailored to anyone. Nothing here is a recommendation that you buy, sell, hold or size any security, commodity, contract or digital asset. I am not a registered investment adviser, broker-dealer or commodity trading advisor, and I am not registered with the SEC, any state securities regulator, the CFTC or the NFA. Viewer charts discussed on stream are discussed as charts of the asset, not as advice about anyone's position; Super Chats and memberships support the channel and a place in the queue, they do not buy advice. I may hold positions in assets discussed and may trade them at any time without notice; where I know I hold something, I say so. Trading and investing carry substantial risk of loss, including loss of all capital; options, futures, perpetuals, leveraged products and event contracts can lose more than the amount invested. Statistics, backtests, paper trades and model outputs are hypothetical, have inherent limitations and do not predict future results. Results and testimonials, where mentioned, are individual experiences and are not typical. Some links are affiliate or referral links; I may earn a commission or credit if you use them, at no extra cost to you. Nothing here is an offer or solicitation where unlawful; do not use any platform that is not available to residents of your region. Consult a licensed professional about your own situation before acting.
About Krown
Krown

Krown

By @eckrown

Former NYSE Market Maker turned full-time Bitcoin, Gold & SPX trader/investor. I teach the systematic, data-driven frameworks I ...