#OrderTypes101 1. Market Order

What it does: Buys or sells immediately at the best available price.

Best for: Speed over price.

Example: "Buy 100 shares of Apple right now."

✅ Pros: Fast execution

❌ Cons: No control over price

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🎯 2. Limit Order

What it does: Sets a specific price to buy or sell. The trade only executes if the market hits that price.

Best for: Controlling entry/exit price.

Example: "Buy Apple only if it drops to $170."

✅ Pros: Price control

❌ Cons: May not execute

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⏳ 3. Stop Order (Stop-Loss)

What it does: Triggers a market order when a stock hits a certain price.

Best for: Limiting losses or locking in gains.

Example: "Sell if Apple falls to $160."

✅ Pros: Risk management

❌ Cons: May sell at a worse price in fast markets

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🎯⏳ 4. Stop-Limit Order

What it does: Combines stop and limit orders—sets a trigger price and a limit price.

Best for: More precise risk control.

Example: "If Apple hits $160, sell but only at $159 or better."

✅ Pros: Controlled risk

❌ Cons: May not fill if price moves too fast

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🔄 5. Trailing Stop Order

What it does: A stop order that follows (trails) the market price by a set amount or percentage.

Best for: Locking in profits while letting winners run.

Example: "Sell if Apple drops 5% from its highest price."

✅ Pros: Automates profit-taking

❌ Cons: Not ideal in volatile markets