#OrderTypes101

Understanding the different types of orders in trading is essential for both beginners and seasoned investors. Each order type serves a unique purpose and can greatly impact your trading outcomes. A market order is the most straightforward—it executes immediately at the best available price. On the other hand, a limit order allows you to set a specific price, and the trade will only occur when the market reaches that price, giving you more control. A stop order becomes a market order once a certain price is hit, helping limit losses or protect profits. Meanwhile, a stop-limit order combines both features, giving even more precision. Knowing when and how to use each order type is key to executing smart trades.