#OrderTypes101

📌 #OrderTypes101

In the world of trading, it is essential to understand the different types of orders as they help traders execute their strategies efficiently and reduce risks. There are several types of orders, but the most common are: Market Order, Limit Order, and Stop Order.

🔹 A Market Order is the simplest type of order, executed immediately at the current market price. It is used when a trader wants to enter or exit a trade quickly.

🔹 A Limit Order is used to specify a certain price for buying or selling, and it is not executed unless the price reaches that level. This type is suitable for those who want to control the price at which they enter or exit.

🔹 A Stop Order acts like a Market Order but is activated only when the price reaches a certain level. It is often used to set stop losses or to enter a trade after breaking a certain level.

Understanding the types of orders gives you greater control over your trades and helps you manage risks wisely.