#OrderTypes101

Understanding order types is fundamental for any trader. Here are the most common:

* Market Order: Executes immediately at the best available current price. Guarantees execution but not a specific price, risking "slippage" in volatile markets.

* Limit Order: Buys or sells at a specified price or better. A buy limit order executes at or below your set price; a sell limit at or above. Guarantees price but not execution.

* Stop Order (Stop-Loss): Becomes a market order once a "stop price" is reached. Used to limit potential losses on an open position.

* Stop-Limit Order: Combines features of stop and limit orders. When the stop price is hit, it becomes a limit order, guaranteeing a price range but not execution.

Choosing the right order type impacts your execution price and strategy.