#OrderTypes101 #OrderTypes101

In trading, understanding order types is key to executing strategies effectively. The most common order is the Market Order, which buys or sells instantly at the best available price—great for speed, but may cause slippage in volatile markets. A Limit Order sets a specific price you're willing to pay or receive; it only executes when the market hits your target, giving you control but no guarantee of execution.

Stop Orders (like Stop-Loss or Stop-Limit) are used to limit losses or lock in profits by triggering a market or limit order once a certain price is reached. These are essential risk management tools. Trailing Stops adjust automatically as prices move in your favor, helping you ride trends while protecting gains.

Choosing the right order type depends on your goals: speed vs. precision, risk vs. reward. Smart traders mix them based on market conditions and personal strategy.