Master Trading: Your Simplified Guide to Basic Order Types 🧩✨

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Order types in trading are fundamental to understanding how to buy and sell financial assets. Here’s a quick summary of the most common ones:

1. Market Order

A market order is a request to buy or sell an asset immediately at the best available price. It is the fastest to execute, but you do not control the exact price you will receive, especially in fast-moving markets.

2. Limit Order

A limit order is a request to buy or sell an asset at a specified price or better.

* A buy limit order is placed at a price lower than the current market price and will only be executed if the price drops to that level or lower.

* A sell limit order is placed at a price higher than the current market price and will only be executed if the price rises to that level or higher.

This type gives you greater control over the price, but there is no guarantee of execution if the market does not reach your specified price.

3. Stop Order / Stop-Loss Order