#OrderTypes101

In the stock market, order types determine how an order is executed. The most common order types include market orders, limit orders, and stop orders. Other advanced order types include trailing stop, stop-limit, and bracket orders.

Here's a breakdown of some key order types:

1. Market Order:

Executes immediately at the best available price (bid or ask).

Guarantees execution but not the price.

Suitable for immediate transactions when price is not a critical factor.

2. Limit Order:

Specifies a price at which you're willing to buy or sell.

Can only be executed at the limit price or better.

Allows for price control, but execution is not guaranteed.

3. Stop Order (Stop-Loss Order):

Triggers an order (usually a market order) when the price reaches a specified stop price.

Used to limit potential losses or protect profits.

4. Stop-Limit Order:

Combines the features of a stop order and a limit order.

When the stop price is reached, it becomes a limit order at the specified limit price.

Provides both risk management and price control.

5. Trailing Stop Order:

Automatically adjusts the stop price as the market price moves, keeping it a certain distance away from the current market price.

Protects profits while allowing the position to continue to benefit from price increases.

6. Bracket Order:

A combination of a main order, a target order (take profit), and a stop-loss order.

Helps manage risk and lock in potential profits.

7. Advanced Order Types:

After Market Order (AMO): Allows placing orders after the regular trading hours.

Day Order: Valid only for the current trading day.

Fill or Kill (FOK): If the entire order quantity cannot be executed immediately, the order is canceled.

Immediate or Cancel (IOC): Any part of the order not immediately executed is canceled.

Cover Order: Combines a market order with a stop-loss order.

Robo Order: An automated order based on pre-defined parameters.