Choosing the right type of order can significantly impact the results of your trading. Whether you are a beginner or an experienced trader, understanding how different orders work helps maximize profitability while effectively managing risks.

Market order – Executes instantly at the current market price. Best for quick entries and exits, but can lead to slippage during volatile movements.

Limit order – Allows you to set a specific price at which you want to buy or sell. Trading is executed only when the market reaches your price, helping to control entry points.

Stop-loss order – Protects your capital by automatically selling an asset if its price falls to a predetermined level. Important for minimizing losses in unpredictable markets.

Take-profit order – Locks in profit by triggering a sale when the asset reaches a certain price. This allows you to capitalize on gains without constantly monitoring the market.

Each type of order has its purpose in different trading strategies.