#OrderTypes101

Even if you don't understand how prices work and just buy and sell stocks on the exchange, you need to understand how **types of orders** work. In fact, these types of orders are instructions you give to your broker on how to buy or sell certain stocks.

The simplest of them are **market orders**, which are executed at the best available price right now. They are ideal for quick transactions, but the price may differ slightly from what you expected.

**Limit orders** allow you to set a maximum purchase price or a minimum selling price. This gives you greater control over the price, but the order may not be executed if the market does not reach your level.

There are also **stop orders**, which become market or limit orders when the price reaches a certain level. This is a great way to protect your profit or limit losses.

Understanding these basics will help you trade more effectively! #Trading #Investing #stockmarket #Finance