#OrderTypes101
Here's an overview of common order types:
1. Market Order:
- Executes immediately at the best available market price.
- Guarantees execution, but not a specific price.
2. Limit Order:
- Executes at a specified price (limit price) or better.
- May not execute immediately if the market price doesn't reach the limit price.
3. Stop-Loss Order:
- Triggers a market order when the price reaches a specified level (stop price).
- Designed to limit potential losses.
4. Stop-Limit Order:
- Combines elements of stop-loss and limit orders.
- Triggers a limit order when the price reaches the stop price.
5. Take-Profit Order:
- Closes a position when the price reaches a specified level.
- Designed to lock in profits.
6. Trailing Stop Order:
- Adjusts the stop price based on market movement.
- Trails the price movement to lock in profits.
7. Fill or Kill (FOK) Order:
- Must be executed immediately and in its entirety.
- If not, the order is canceled.
8. All or None (AON) Order:
- Must be executed in its entirety.
- If not possible, the order remains active until it can be filled.
Each order type serves a specific purpose, and choosing the right one depends on your trading strategy and risk management goals.