#OrderTypes101

In the world of trading, order types determine how an order is filled and managed. Some of the most common order types include market, limit, and stop orders. Market orders are executed immediately at the best available price, while limit orders specify a price at which the order should be executed. Stop orders become market orders once a trigger price is reached, allowing traders to manage risk.

Order Types Explained:

Market Order:

Executes immediately at the current market price. It guarantees execution but not necessarily the best price, according to Trading 212.

Limit Order:

Specifies a price at which the order should be executed. It guarantees the price but not necessarily execution, says Investopedia.

Stop Order:

Becomes a market order once a specific price (the "stop price") is reached. It helps manage risk but may not guarantee execution at a specific price, according to ThinkMarkets.

Trailing Stop Order:

Adjusts the stop price as the market price moves, helping to lock in profits or limit losses, explains ThinkMarkets.

Other Order Types:

On Close Order: Specifies the order to be executed at the market's closing price, according to www.strike.money.

Good-Til-Canceled (GTC): Remains active until canceled, says Option Alpha.

Immediate-Or-Cancel (IOC): Executes as much of the order as possible immediately and cancels the remainder, explains Angel One.