#OrderTypes101 # Basics of Order Types in Trading

## Market Orders

- Immediate buy/sell at the current market price

- Fastest execution but no price guarantee

- Best for highly liquid assets

## Limit Orders

- Set a maximum price for buying or a minimum for selling

- Guarantees price but does not guarantee execution

- Example: "Buy XYZ at $50" will only execute at 50$ or lower

## Stop Orders / Stop-Loss

- Converts to a market order when the stop price is reached

- Used to limit losses: "Sell XYZ at 45$ stop"

- Does not guarantee execution price after activation

## Stop-Limit Orders

- Combines features of stop and limit orders

- Activated at the stop price but only executed within the limit range

- Example: "Sell XYZ at 45$ stop, 44.50$ limit"

## Other Common Types:

- **Good 'Til Canceled (GTC)**: Remains active until executed or canceled

- **Day Order**: Cancels if not executed by the end of the session

- **All or Nothing (AON)**: Must execute the full quantity or none

- **Immediate or Cancel (IOC)**: Executes what can immediately and cancels the rest

Understanding these types helps traders control entry and exit points and manage risks. What type of orders do you use most frequently?