#OrderTypes101 OrderTypes101 101

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

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

A limit order gives you more control. You specify the exact price at which you want to buy or sell. Your order will only be executed if the market reaches the price you specified or better. This order prioritizes price over speed. If the market never reaches your price.