#OrderTypes101 📘 Order Types 101: The Basics

🟢 1. Market Order

What it does: Buys or sells immediately at the best available price.

Use when: Speed matters more than price.

Risk: Slippage (buying/selling at a worse price than expected in volatile markets).

> ✅ Fast execution

❌ No price control

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🟠 2. Limit Order

What it does: Buys or sells only at a specific price or better.

Use when: You want to control the price you pay or receive.

Risk: May not execute if the price isn’t reached.

> ✅ Price control

❌ Not guaranteed to fill

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🔴 3. Stop Order (aka Stop-Loss)

What it does: Converts to a market order once a specific price is hit.

Use when: Protecting yourself from losses or locking in gains.

Risk: Can suffer slippage during volatile markets.

> ✅ Auto-triggers to reduce losses

❌ Executes at market — not exact price

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🔵 4. Stop-Limit Order

What it does: Becomes a limit order after the stop price is hit.

Use when: You want to control the price even after the trigger.

Risk: May not execute if price moves too fast.

> ✅ Combines stop-loss + price control

❌ May miss execution in fast moves

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⚫ 5. Trailing Stop Order

What it does: Sets a stop-loss that moves with the market price.

Use when: Locking in profits while giving a trade room to grow.

Risk: Still subject to slippage if it converts to a market order.

> ✅ Automatically follows market up/down

❌ Can trigger unexpectedly in high volatility

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🟣 6. Fill or Kill (FOK)

What it does: Executes the entire order immediately or cancels it.

Use when: You want all or nothing — especially for large trades.

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🟡 7. Immediate or Cancel (IOC)

What it does: Fills as much as possible right away, then cancels the rest.

Use when: You want partial fills fast.

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🧊 8. Good Till Canceled (GTC)

What it does: Order stays active until it’s filled or manually canceled.

Use when: You want a long-term pending order.

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🕰️ 9. Day Order

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