#OrderTypes101
In trading, there are several types of orders:
- *Market Order*: Executes immediately at the current market price.
- *Limit Order*: Executes at a specified price or better.
- *Stop-Loss Order*: Executes when the price reaches a specified level, limiting potential losses.
- *Stop-Limit Order*: Combines elements of stop-loss and limit orders, executing at a specified price after a trigger price is reached.
- *Take-Profit Order*: Closes a position when a specified profit level is reached.
Each order type serves a specific purpose, allowing traders to manage risk, lock in profits, and automate their trading strategies. Understanding these order types is essential for effective trading.