#OrderTypes101 Order Types 101
Understanding order types is fundamental for effective trading. A Market Order executes immediately at the best available current price. It guarantees execution but not a specific price.
Limit Orders allow you to set a specific price to buy or sell. Your order only executes if the market reaches your desired price, offering price control but not guaranteed execution.
Stop-Loss Orders are crucial for risk management, automatically selling an asset if its price falls to a predetermined level, limiting potential losses. Conversely, Take-Profit Orders automatically sell an asset when it reaches a target price, locking in gains.
Finally, an OCO (One-Cancels-the-Other) Order combines a stop-loss and a take-profit order; if one executes, the other is automatically cancelled, perfect for comprehensive trade management.