#OrderTypes101 Here are the main order types used in trading:
- *Basic Order Types*
- *Market Order*: Buy or sell a stock at the current market price. It's executed immediately, but the price may vary depending on market conditions.
- *Limit Order*: Buy or sell a stock at a specified price or better. It may not be executed immediately, but you have control over the price.
- *Stop Order*: Buy or sell a stock when it reaches a specified price (stop price). It becomes a market order once triggered.
- *Advanced Order Types*
- *Stop Limit Order*: A stop order that becomes a limit order when triggered.
- *Trailing Stop Order*: A stop order that adjusts its price based on market movements.
- *MidPrice Order*: Buy or sell at the midpoint of the bid-ask spread ¹ ².
These order types help traders manage risk, lock in profits, and execute trades efficiently.