#OrderTypes101
Order types are specific instructions that traders provide to brokers or trading platforms to manage how they buy or sell assets. A market order executes immediately at the best available price, ensuring speed but not price control.
In contrast, a limit order sets a price threshold, only executing the trade when the market reaches the desired level. Stop orders automatically convert into market orders once a preset stop price is reached, offering risk management tools.
Stop-limit orders refine this further by triggering a limit order instead of a market order when the stop price is met, allowing for price control.
Trailing stop orders adjust dynamically with market price movements, helping to lock in gains or minimize losses as prices move favorably.
More specialized types, like fill-or-kill (FOK) and immediate-or-cancel (IOC) orders, emphasize timing by ensuring trades are executed in full immediately or canceled if they cannot be filled.
