#OrderTypes101 Order Types 101 (150 Words)

In trading, understanding different order types is essential for managing risk and executing strategies effectively. The most common types include:

Market Order: This executes instantly at the best available price. It’s fast but may suffer from slippage in volatile markets.

Limit Order: You set the price at which you want to buy or sell. It gives control over the price but may not execute if the market doesn’t reach your target.

Stop Order (Stop-Loss): A trade triggers when the price hits a specific level, helping limit losses. For example, a sell stop order activates when the asset drops to your chosen price.

Stop-Limit Order: Combines stop and limit features—when the stop price is hit, a limit order is placed. It adds control but may not execute during fast market moves.

Take-Profit Order: Automatically sells your position at a target price to lock in profits.

Using the right order type helps manage risk and improve trading efficiency.