#OrderTypes101

In financial transactions, order type determines how and when a buy or sell order is executed in the market. There are several common types of orders:

Market Order: Market order – executed immediately at the best available price. Fast but does not control the exact price.

Limit Order: Limit order – executed only when the price reaches a specified level. Better price control but does not guarantee order execution.

Stop Order: Stop order – activated when the price hits a specific level, commonly used to cut losses.

Stop-Limit Order: Combines stop and limit, more flexible but more complex.

Understanding the types of orders helps traders manage risk and optimize trading strategies.