#OrderTypes101

# Order Types 101: Understanding the Basics

Order types are essential tools for traders and investors, allowing them to specify how and when their trades are executed. The most common order types include:

1. **Market Order**: Executes immediately at the current market price.

2. **Limit Order**: Sets a specific price to buy or sell, ensuring price control but no guaranteed execution.

3. **Stop Order**: Becomes a market order once a specified price (stop price) is reached, helping limit losses or lock in profits.

4. **Stop-Limit Order**: Combines stop and limit orders, triggering a limit order once the stop price is hit.

Other advanced orders include **trailing stops**, **fill-or-kill (FOK)**, and **good-'til-canceled (GTC)**. Choosing the right order type depends on trading strategy, risk tolerance, and market conditions. Understanding these basics helps traders optimize execution and manage risk effectively.

Mastering order types is a key step toward becoming a more disciplined and successful trader! 🚀