#OrderTypes101

In trading, an order is how you tell a platform what and how you want to buy or sell. Understanding different order types helps you control risk, timing, and price.

1. Market Order

This buys or sells immediately at the best available price. It’s fast but may lead to slippage if the market is volatile or low in liquidity.

2. Limit Order

You set the exact price you’re willing to buy or sell at. The trade only happens if the market reaches your price. It gives more control but might not fill if the price isn’t hit.

3. Stop Order (Stop-Loss)

This becomes a market order when a specific price (the stop price) is reached. It's mainly used to limit losses—e.g., sell if the price drops below a set level.

4. Stop-Limit Order

Combines a stop order and a limit order. When your stop price is hit, a limit order is triggered instead of a market order. It gives precision but may not execute in fast markets.

Each type suits different goals—market for speed, limit for control, and stop for protection. Smart order use is key to solid trading strategy.