Understanding order types is the foundation of successful trading. Each order determines how and when you enter or exit a position. The most common are market orders and limit orders. A market order is executed instantly at the current price — it is convenient for quick buying or selling, but does not guarantee the best price. A limit order, on the other hand, allows you to specify the desired price, at which the trade will be executed — it gives you more control, but may not trigger if the price does not reach it.

It's also worth knowing about stop orders and stop-limit orders, which help minimize losses or secure profits. Proper use of orders helps manage risks and improve strategy.