#OrderTypes101
Order types are instructions investors use to buy or sell securities in financial markets. Common types include:
Market Orders: Execute immediately at the current market price, prioritizing speed over price control.
Limit Orders: Set a specific price to buy (below market) or sell (above market), ensuring price control but not execution.
Stop Orders: Trigger a market order when a stock hits a specified price, used to limit losses or protect gains.
Stop-Limit Orders: Combine stop and limit, triggering a limit order at a set price, balancing control and execution risk.
Each suits different strategies, balancing speed, price, and execution certainty. (94 words)
Order types are instructions investors use to buy or sell securities in financial markets. Common types include:
Market Orders: Execute immediately at the current market price, prioritizing speed over price control.
Limit Orders: Set a specific price to buy (below market) or sell (above market), ensuring price control but not execution.
Stop Orders: Trigger a market order when a stock hits a specified price, used to limit losses or protect gains.
Stop-Limit Orders: Combine stop and limit, triggering a limit order at a set price, balancing control and execution risk.
Each suits different strategies, balancing speed, price, and execution certainty. (94 words)
