#OrderTypes101

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📘 Market Order

Definition: Buys or sells immediately at the best available price.

Pros: Fast execution.

Cons: No price control; could be filled at an unfavorable price during volatility.

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📘 Limit Order

Definition: Sets a specific price at which you want to buy or sell.

Pros: Price control.

Cons: Not guaranteed to execute if the market doesn’t hit your price.

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📘 Stop Order (Stop-Loss)

Definition: Converts to a market order when a certain price (stop price) is reached.

Pros: Helps minimize losses.

Cons: Price can slip beyond the stop level due to volatility.

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📘 Stop-Limit Order

Definition: Becomes a limit order once the stop price is hit.

Pros: More control over execution price than a stop order.

Cons: Might not execute if the market price skips over your limit.

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📘 Trailing Stop Order

Definition: A stop order that moves with the market price by a set percentage or dollar amount.

Pros: Locks in profits while allowing for growth.

Cons: Can still be triggered by short-term price dips.

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📘 Good-’Til-Canceled (GTC) vs. Day Orders

GTC: Stays active until filled or canceled manually.

Day Order: Expires at the end of the trading day if not filled.