#OrderTypes101 trading, "Order Type 101" typically refers to an introductory overview of the various order types used in financial markets. Understanding these order types is crucial for effective trading and risk management. Here's a breakdown of the most common order types:

🛒 Basic Order Types

Market Order

Description: An instruction to buy or sell a security immediately at the best available current price.

Pros: Ensures quick execution.

Cons: The execution price may vary, especially in volatile markets.

Limit Order

Description: An order to buy or sell a security at a specified price or better.

Pros: Provides control over the execution price.

Cons: Execution is not guaranteed if the market doesn't reach the specified price.

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Stop Order (Stop-Loss)

Description: An order to buy or sell a security once it reaches a specified price, known as the stop price.

Pros: Helps in limiting losses or protecting profits.

Cons: Once triggered, it becomes a market order, which may execute at an unfavorable price in volatile markets.