#OrderTypes101

Understanding "Order Types 101" is fundamental for anyone involved in financial markets. At its core, an order type dictates how a buy or sell instruction is executed. The most common are market orders, which execute immediately at the best available price, offering speed but no price guarantee. Conversely, limit orders allow traders to specify a maximum buy price or minimum sell price, ensuring price control but risking non-execution if the market doesn't reach that level. More complex types include stop orders (triggering a market or limit order once a certain price is hit) and trailing stops (which adjust with favorable price movements). Choosing the right order type is crucial for managing risk and achieving desired trade outcomes.