#OrderTypes101

The Basics Every Trader Should Know

When trading in the financial markets, understanding different order types is essential. They determine how and when your trades are executed.

The most basic is a Market Order. It buys or sells an asset instantly at the current market price. It’s fast but can suffer from price slippage in volatile markets.

Next is a Limit Order, where you set a specific price to buy or sell. The trade only happens when the market reaches your chosen price, giving you more control but no guarantee of execution.

A Stop-Loss Order automatically sells an asset when it hits a set price, limiting potential losses. On the flip side, a Take-Profit Order locks in profits once a desired price level is reached.

There are advanced types too, like Trailing Stops and OCO (One Cancels the Other). Mastering these tools can greatly improve your trading strategy and risk management.