#OrderTypes101 In trading, various order formats are used depending on the conditions, goals, and current market situation. Below are the most common types of orders.

Market Order

This is a command for immediate execution of a transaction at the best available price. This format is suitable in situations where speed is prioritized over price. It is used in fast-moving markets when it is important to enter or exit a position immediately.

Example: if an asset is trading at $100, a market order to buy is executed instantly at the current or nearest available price.

Limit Order

This is an order to trade at a predetermined price that is executed only when the quoting reaches the specified level. This approach allows controlling the entry or exit price but does not guarantee execution.

Example: a trader wants to buy an asset at $95 with the current price at $100. He places a limit order that will be executed only if the price drops to $95.

Stop Order

Activated when a specified mark is reached and then converted into a market or limit order. This type is used for automatically closing a position to limit losses or secure profits.