#OrderTypes101 Order Type 101

Order types are instructions given by traders to brokers or trading platforms on how to buy or sell securities. The most basic order type is the market order, which executes immediately at the best available price. It's fast but may result in price slippage during volatile conditions. A limit order specifies the exact price at which a trader is willing to buy or sell; it provides price control but may not execute if the market doesn't reach that level. A stop order becomes a market order once a specific price is reached, often used to limit losses or lock in profits. A stop-limit order combines features of both stop and limit orders. Understanding different order types helps traders manage risk, control execution prices, and develop effective trading strategies. Choosing the right order type depends on market conditions, investment goals, and how much price fluctuation a trader is willing to tolerate.