#OrderTypes101
📘 Basic Order Types
1. Market Order
Definition: Buy or sell immediately at the best available price.
Pros: Fast execution.
Cons: You may get a worse price than expected during volatility.
📌 Example: “Buy 10 shares of Apple right now.”
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2. Limit Order
Definition: Buy or sell at a specific price or better.
Pros: More control over price.
Cons: May not be executed if the market doesn't reach your price.
📌 Example: “Buy 10 shares of Apple if it drops to $170.”
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3. Stop Order (Stop-Loss Order)
Definition: Becomes a market order once a certain price is hit.
Used to: Limit losses or protect profits.
📌 Example: “Sell if Apple falls to $160.”
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4. Stop-Limit Order
Definition: Becomes a limit order once a stop price is hit.
Combines: Stop order + limit order.
Risk: Might not be filled in fast-moving markets.
📌 Example: “Sell if Apple drops to $160, but only at $159 or better.”
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🛠️ Advanced/Conditional Orders
5. Trailing Stop Order
Definition: A stop order that follows the price by a fixed amount.
Used to: Lock in profits as the price moves in your favor.
📌 Example: “Sell if the price drops $2 below its highest point.”
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6. Fill or Kill (FOK)
Definition: The order must be filled immediately in full or it’s cancelled.
Used by: Traders needing large, all-at-once executions.
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7. Good 'Til Cancelled (GTC)
Definition: Stays active until executed or manually cancelled.
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8. Immediate or Cancel (IOC)
Definition: Fill whatever amount is available immediately, cancel the rest.
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