#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.