[Glossary] Exchanges & Order Types Terms

CryptoKas

Below is a comprehensive glossary of terms you’ll encounter in Exchanges & Order Types discussions. Definitions are clear and concise—ideal for mastering how markets operate behind the scenes.

Exchange Types

Centralized Exchange (CEX): A platform that holds your assets and matches orders on your behalf (e.g., Binance, Coinbase).
Decentralized Exchange (DEX): A protocol where you trade directly from your wallet via smart contracts (e.g., Uniswap, SushiSwap).
Hybrid Exchange: Combines features of CEX and DEX, offering order books with non-custodial trading.
Aggregate Exchange/Aggregator: A service that routes your order across multiple venues to find the best price and liquidity.

Core Order Types

Market Order: Executes immediately at the best available price—guaranteed fill, but price may vary.
Limit Order: You specify a price to buy or sell; executes only if the market reaches your price.
Stop Order: Converts to a market order once price hits a trigger level—used to prevent losses or enter breakouts.
Stop-Limit Order: Becomes a limit order (not market) once the stop price is hit—gives more control over execution price.

Advanced Order Types

Post-Only / Maker-Only: Ensures your limit order adds liquidity by refusing to match against existing orders.
Immediate-Or-Cancel (IOC): Fills as much of your order as possible right away; cancels any remainder.
Fill-Or-Kill (FOK): Must be filled in its entirety immediately or canceled fully—no partial fills.
Good ’Til Canceled (GTC): Remains active until you manually cancel it (or the exchange’s time limit is reached).
Good ’Til Time (GTT): Active until a specified date/time, then automatically cancels if not filled.
One-Cancels-the-Other (OCO): Submits two orders simultaneously; if one executes, the other is canceled.

Order Book & Market Mechanics

Order Book: Live display of all open buy (bids) and sell (asks) orders by price level.
Bid: The highest price a buyer is willing to pay.
Ask: The lowest price a seller is willing to accept.
Bid–Ask Spread: Difference between the best bid and ask; a measure of market tightness.
Depth Chart: A visual representation of cumulative bids and asks, showing where liquidity clusters.
Matching Engine: The exchange’s backend system that pairs buy and sell orders based on price/time priority.

Fees & Cost Considerations

Maker Fee: Discounted fee for adding liquidity to the order book (your order rests as a bid/ask).
Taker Fee: Standard fee for removing liquidity by matching against resting orders.
Withdrawal Fee: Charge to transfer assets off the exchange to your wallet.
Deposit Fee: Some platforms charge a fee to deposit certain assets (rare on major exchanges).
Conversion Fee: Cost to swap between assets instantly on platforms offering “cross” or “instant” trades.

Feel free to pin this thread as your reference. If there are any missing terms or you’d like deeper examples, drop a comment below!*