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Indeed, both can involve sex with multiple people, but sex parties are usually not a physical free-for-all. While an orgy is probably more informal, a sex party is organised and proper ones come with clear sets of rules.
You might encounter people that make you uncomfortable at sex parties, perhaps because you're not attracted to them but they are to you. However, your mere presence at such a party isn't an invite for people to touch you. General social hook-up etiquette applies, which means lots of talking, shared eye contact, and body language will precede sexual interest.
Generally, those who go to a sex party are all up for a similar experience and have mutual fetishes. If you think it's creepy for somebody else to watch you have sex, these parties are not right for you. Some people particularly couples will be exploring their sexuality vicariously through others at a sex party, and taking memories to their own bedroom with them. Sex parties held at bars, clubs or other venues are usually more about meeting like minded people than actually engaging in sex.
In fact, most of these parties in publicly-accessible venues tend to be a form of "play" party: attendants are not pre-approved, people wear underwear or other minimal clothing, and any sexual activity is often limited to another space and probably won't be penetrative. Such play parties are a lot more manageable for beginners. Sex parties at private houses can be a more hardcore affair.
Guests are pre-approved by the host β normally you need someone in that scene to vouch for your character. A well-run sex party should have very strict rules about safety and consent, and violations are taken seriously.