In the context of trading, an "order type" refers to the way a buy or sell order is executed in a market. Here are some common types of orders:
1. *Market Order*: Executes immediately at the best available price in the market.
2. *Limit Order*: Executes only when the price reaches a specific level set by the trader.
3. *Stop Order*: Becomes a market order when the price reaches a specific level, designed to limit losses or protect gains.
4. *Stop-Limit Order*: Combines the features of stop and limit orders, executing as a limit order when the price reaches the stop level.
5. *Take Profit Order*: Executes automatically when a specific profit price is reached.
6. *Trailing Stop Order*: Automatically adjusts the stop level according to price movement, allowing profit protection while maintaining market exposure.
Each type of order has its own advantages and disadvantages, and traders choose the type of order that best fits their strategy and objectives.