#OrderTypes101

Order types in trading define how and when a trade is executed, helping traders manage risk and strategy. The most common is a market order, which buys or sells immediately at the best available price. A limit order sets a specific price at which a trader is willing to buy or sell, only executing when the market reaches that price. A stop order becomes a market order once a specified price (the stop price) is reached, often used to limit losses. A stop-limit order combines both, triggering a limit order when the stop price is hit. These order types help traders control execution, protect against losses, and take advantage of market opportunities