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Sure! Here's a quick guide titled #OrderTypes101 to help you understand the most common order types used in trading stocks, crypto, or other financial assets:
📘 #OrderTypes101: Understanding Market Basics
1. Market Order
Definition: Buys or sells immediately at the best available price.
✅ Use When: Speed is more important than price.
⚠️ Watch Out: Price may vary slightly due to volatility.
2. Limit Order
Definition: Buys or sells only at a specific price or better.
✅ Use When: You want price control.
❌ Downside: Might not get filled if the price doesn’t reach your target.
3. Stop Order (Stop-Loss)
Definition: Converts to a market order once a specific price is reached.
✅ Use When: Protecting against losses or locking in gains.
⚠️ Note: Could sell for less than expected in fast-moving markets.
4. Stop-Limit Order
Definition: A stop order that becomes a limit order at a specified price.
✅ Use When: You want protection but also control the execution price.
❌ Risk: Might not execute if the price skips your limit.
5. Trailing Stop Order
Definition: Moves with the price to lock in profits while limiting loss.
✅ Use When: You want to follow gains and minimize downside.
📈 Example: “Sell if price drops 5% from the peak.”
6. Fill or Kill (FOK)
Definition: Must be filled entirely immediately, or canceled.
✅ Use When: You want all or nothing—no partial