When trading in financial markets, specific orders are used to open and close trades. Here are the most important types of orders that every trader should know:
### 1. **Market Order**
- Execute the trade immediately at the current market price.
- Ideal when you want to enter or exit quickly.
### 2. **Limit Order**
- Specify a certain price to buy or sell the asset.
- Example: Buying a stock at 50 riyals if the price drops to that level.
### 3. **Stop Order**
- Becomes a market order when a specified price is reached (used to limit losses or secure profits).
- Example: Selling the stock at 45 riyals if it drops to prevent larger losses.
### 4. **Stop-Limit Order**
- A combination of "Stop Order" and "Limit Order", where two prices are specified: the alert price and the execution price.
- Example: If the stock reaches 45 riyals (stop), it is sold only if the price is 44.5 riyals or higher (limit).
### 5. **Take-Profit Order**
- Automatically close the trade when a specified profit is achieved.
- Example: Selling the currency when its price rises to a target level.
### 6. **Time-Based Order**
- Execute the trade within a specified time frame (like "Day Order" or "Good Till Canceled").
### Summary:
Choosing the right type of order depends on your strategy and risk management. Some orders (like limit and stop) help control losses and secure profits, while market orders execute quickly but at a variable price.