#OrderTypes101
🔴 Your guide to understanding order types in trading.
In the world of trading, understanding order types is essential for risk management and profit realization. The first type is the market order (Market Order), which executes immediately at the best available price. It is suitable for traders who want to enter or exit a position quickly.
The limit order (Limit Order), on the other hand, sets the price at which you want to buy or sell. It is used to achieve a specific price but may not be executed if the market does not reach that price.
Next, there is the stop order (Stop Order), which activates when the price reaches a certain level, to protect gains or reduce losses.
Each of these order types serves a different strategy. Choosing the right type enhances the chances of success and reduces risks. Discover the characteristics of each order and determine what fits your trading goals.