#OrderTypes101 #OrderTypes101 refers to an overview or guide to the different types of orders commonly used in financial markets, especially in stock trading or cryptocurrency trading. Here’s a quick breakdown of the most common order types:

🔹 1. Market Order

Definition: An order to buy or sell immediately at the best available current price.

Use Case: When you want to execute the trade quickly.

Pros: Fast execution.

Cons: No control over execution price.

🔹 2. Limit Order

Definition: An order to buy or sell at a specific price or better.

Use Case: When you want to control the price you pay or receive.

Pros: Price control.

Cons: May not execute if the market doesn’t reach your limit price.

🔹 3. Stop Order (Stop-Loss Order)

Definition: Turns into a market order once a certain price (the stop price) is reached.

Use Case: To limit losses or protect profits.

Pros: Automates risk management.

Cons: May execute at a worse price than expected during fast moves.