#OrderTypes101

Market Order: Guarantees execution, but not price. Best for immediate action in highly liquid markets.

Limit Order: Guarantees price, but not execution. Ideal for precise entry/exit points and avoiding slippage.

Stop-Loss Order: Limits potential losses by triggering a market (or limit) order when a specified price is reached. Crucial for risk management.

Take-Profit Order: Locks in profits by triggering a limit order when a target price is reached. Helps with disciplined profit-taking.

When and How to Use Them:

Market Order: When speed is critical and you accept the current market price.

Limit Order: When you want to buy/sell at a specific price or better, especially in volatile markets or for less liquid assets.

Stop-Loss Order: Always, to define and limit your maximum acceptable loss on a trade.

Take-Profit Order: To automatically secure profits once your price target is met, removing emotional decision-making.