In trading, understanding order types is essential to executing strategies effectively. The most common types are market orders, which buy or sell immediately at the best available price, and limit orders, which set a specific price at which you're willing to buy or sell. Stop orders trigger a market order once a certain price is reached, helping manage losses or enter positions at a breakout. A stop-limit order combines both stop and limit conditions, giving more control but with execution risk. Trailing stops adjust dynamically with market movement, locking in gains. Choosing the right order type balances speed, control, and risk. Mastering these tools can significantly improve your trading precision and protect your capital in volatile markets.
