#OrderTypes101 In trading and investing, there are different types of orders; understanding each one is crucial for managing risks and achieving desirable outcomes.
1- Market Orders: These are executed immediately at the available market price; they are fast and effective, but the price may vary.
2- Limit Orders: These orders allow you to specify the price at which you want to trade; the order is only executed if the market reaches the specified limit.
3- Stop Orders: These are market orders but with a specific price to be reached; they are ideal for entering a position that triggers a trade, either (Buy Stop) or (Sell Stop).
4- Stop-Limit Orders: These are a combination of Stop and Limit; they are activated at a Stop price. Instead of being a market order, it becomes a Limit order at a specific price.
5- GTT Orders: This is a type of order that remains active until the correct market price is reached or it is manually canceled.