#OrderTypes101

Understanding order types is fundamental for effective trading. A market order is executed immediately at the best available price, guaranteeing execution but not price. A limit order allows you to specify the maximum purchase price or the minimum selling price, guaranteeing the price but not execution. A stop order becomes a market order when a certain "stop price" is reached, often used to limit losses. A stop-limit order combines the stop price with a limit, offering greater control over the price at which the order is executed after the stop price is reached. Choosing the right order type depends on your goals and market conditions.