Hashtag #OrderTypes101 usually indicates an educational series or informative post explaining types of trading orders in financial markets (such as FOREX, stocks, or cryptocurrencies). Here’s a simplified explanation of the main types of trading orders, suitable for the hashtag #OrderTypes101:
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📘 #OrderTypes101 – Basic types of trading orders:
1. Market Order – Market Order
• ✅ Immediate execution at the current market price.
• 🟡 Suitable for those who want to enter or exit immediately without caring about the exact price.
2. Limit Order – Limit Order
• ✅ Buy or sell at a specified price or better.
• 🟢 Useful for those who want a specific price, but it may not be executed if the price does not reach that level.
3. Stop Order – Stop Order
• ✅ Becomes a market order when reaching a certain price.
• 🔴 Typically used to minimize losses (Stop Loss) or to enter a trade when breaking a certain level.
4. Stop-Limit Order – Stop-Limit Order
• ✅ Combines a stop order and a limit order.
• 🔁 Turns into a limit order when the stop price is triggered, but it will only be executed at a specific price as well.
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🧮 Practical numerical example – #OrderTypes101
🎯 Let's assume the current price of XYZ stock is $100
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1. Market Order – Market Order
• Request: Buy 10 shares of XYZ immediately.
• Result: Bought immediately at the current market price = $100.
• ✅ Executed: 10 × 100 = $1000
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2. Limit Order – Limit Order
• Request: Buy 10 shares when the price drops to $95.
• Result: The order is not executed unless the price reaches 95 or lower.
• ⏳ If the price reaches 95 ➤ the order is executed.
• ❌ If the price does not reach ➤ the order remains pending.
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3. Stop Order – Stop Order (example of Stop Loss)
• Request: Own 10 shares purchased at $100, and you want to stop the loss at $90.
• Result: If the price drops and reaches 90, the order automatically turns into a market order and is sold immediately at the available price.
• 🔻 It may be sold at a slightly lower price than 90 due to price slippage.
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4. Stop-Limit Order – Stop-Limit Order
• Request: Sell the stock if it drops to $90 (activation price), but at a price not less than $88 (sell limit).
• Result:
• If the price reaches 90 ➤ the order turns into a limit order.
• The sale is executed only if the price is 88 or above.
• ❗If the price drops quickly to 87 ➤ the order will not be executed
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