#OrderTypes101 Main Types of Orders

1. Market Order

Executes the operation immediately at the best available price. Ideal when speed is more important than the exact price.

✅ Advantage: Instant execution

⚠️ Risk: Slippage (the final price may differ from expected)

2. Limit Order

Buys or sells at a specific price or better. Only executes if the market reaches that price.

✅ Advantage: Control over entry or exit price

⚠️ Risk: May not execute if the price is not reached

3. Stop Order (Stop Order or Stop-Loss)

A market order is triggered when the price reaches a specific level (the "stop"). Used to limit losses or enter the market with momentum.

✅ Advantage: Protection against adverse movements

⚠️ Risk: Execution at the next best price, which may be unfavorable

4. Stop-Limit Order

Similar to the stop order, but when triggered, it places a limit order instead of a market order.

✅ Advantage: More control over execution price

⚠️ Risk: May not execute if the price moves quickly

5. Trailing Stop Order

Automatically adjusts the stop level as the price moves in your favor, protecting profits while you remain in the trade.

✅ Advantage: Maximizes profits in trends

⚠️ Risk: In high volatility, it may trigger prematurely

6. OCO Order (One Cancels the Other)

Combines two orders: if one executes, the other is automatically canceled. Useful for simultaneously setting a profit target and a stop-loss.

✅ Advantage: Automated risk and profit management

⚠️ Risk: Not all exchanges or brokers offer it

7. Fill or Kill Order (FOK)

The order must be executed completely and immediately, or it is canceled entirely.

✅ Advantage: Useful for institutional or high-volume traders

⚠️ Risk: High probability of non-execution