#OrderTypes101

In the world of investing and trading, understanding order types is crucial for making smart, timely decisions. An order type defines how and when a trade will be executed. The most common is a market order, which buys or sells immediately at the best available price. A limit order allows you to set the price at which you’re willing to buy or sell — the trade only goes through if the market reaches that price. A stop order triggers a market order once a certain price is hit, often used to limit losses. A stop-limit order combines both concepts, giving traders more control over execution and price. Trailing stops adjust automatically as prices move, protecting profits. Each order type serves different strategies and risk tolerances. Choosing the right one can make a significant difference in both day trading and long-term investing. Mastering these basics is key to trading with confidence and efficiency.