#OrderTypes101

In trading, understanding order types is essential for managing risk and executing strategies. The most basic type is a market order, which buys or sells immediately at the best available price. While fast, it may result in slippage during volatile markets.

A limit order sets a specific price at which you're willing to buy or sell. It ensures price control but may not be filled if the market doesn't reach your level.

A stop order triggers a market order when a specified price is hit, commonly used to limit losses (stop-loss) or lock in profits (stop-limit). A stop-limit order adds a limit price to the stop, reducing slippage risk but with the chance it won’t be executed.

Trailing stops adjust dynamically as the price moves favorably, helping protect gains.

Choosing the right order type helps traders control entry, exit, and risk. Each has pros and cons depending on market conditions and goals.