#OrderTypes101 In trading, understanding order types is essential for effective execution. The most common is the market order, which buys or sells instantly at the best available price. A limit order sets a specific price, executing only when the market reaches it. Stop orders trigger a market order once a price threshold is hit, often used to limit losses. Stop-limit orders combine both stop and limit features for added control. Each order type serves a unique purpose, and knowing when to use them can improve strategy, manage risk, and help traders make smarter, faster decisions.