#OrderTypes101 In trading, order types determine how your buy or sell transactions are executed. Market orders execute immediately at the current market price, while limit orders execute only at a specified price. Stop orders become market orders when a specific price is reached, often used to limit losses. Stop-limit orders combine elements of stop and limit orders, offering more control. Take-profit orders automatically close a position when a certain profit level is reached. Understanding these order types is crucial for effective trading, allowing you to manage risk, capitalize on opportunities, and execute your strategy with precision. Each type serves a specific purpose in trading.