#OrderTypes101 Order types refer to the different ways traders can execute transactions in the financial markets. Key order types include:
1. **Market Order**: An order to buy or sell a security immediately at the current market price.
2. **Limit Order**: An order to buy or sell a security at a specified price or better. It will only execute at the limit price or more favorable.
3. **Stop Order (Stop-Loss Order)**: An order to buy or sell once the price reaches a specified level, triggering a market order.
4. **Stop-Limit Order**: Combines aspects of stop and limit orders, where the order is activated at a certain stop price but executes only at a limit price or better.
5. **Trailing Stop Order**: A type of stop order that moves with the market price, allowing for profit protection while giving the trade room to grow.
6. **Good 'Til Canceled (GTC)**: An order that remains active until it is executed or canceled by the trader.
7. **Day Order**: An order that is only valid for the current trading day and expires if not executed.
Understanding these order types helps traders manage risk and execute their strategies more effectively.