Order Types: A Brief Summary
In trading, an order is an instruction to buy or sell an asset. The main types of orders are crucial for executing strategies. A market order buys or sells immediately at the best available price, ideal for speed but without price control. A limit order specifies a maximum purchase price or a minimum selling price, guaranteeing the price but not the execution. Stop orders (stop-loss, stop-limit) are triggered when the price reaches a predefined level, used to limit losses or secure profits. Understanding these types is essential for managing risk and optimizing operations.