#OrderTypes101
Here is a brief guide #OrderTypes101 — the main types of orders that every trader should know:
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🟢 1. Market Order
What it does: Buys/sells at the current market price.
Pros: Instant execution.
Cons: Not always the best price (especially in low liquidity).
✅ Used when speed is important.
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🟡 2. Limit Order
What it does: Buys/sells at a specified price or better.
Pros: Control over entry/exit price.
Cons: May not be executed.
✅ Suitable for planned entries and exits.
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🔴 3. Stop Order
What it does: Activates a market order when a certain price is reached.
Pros: Protection against losses (stop-loss) or securing profits (stop-buy).
✅ Used for automatic capital protection.
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🟠 4. Stop-Limit Order
What it does: Combines stop and limit.
Example: If the price falls to $100 (stop), a sell order is placed at $99 (limit).
✅ For advanced risk and execution control.
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