#OrderTypes101 101

When placing an order, you're not just clicking 'Buy' or 'Sell', but choosing an order type that guides the exchange on how to execute your trade. The two basic types are market orders and limit orders.

A market order is the simplest, directing the exchange to buy or sell an asset immediately at the best available price in the market. This type prioritizes speed and ensures your order is executed, but does not guarantee the price, which can pose a risk in volatile markets (this is known as slippage).

A limit order gives you greater control. You specify the exact price at which you want to buy or sell. Your order will not be executed unless the market reaches the price you specified or better. This order prioritizes price over speed. If the market never reaches your price.