#OrderTypes101

1. Market Orders:

Market orders are the simplest type of orders, requesting the investor to buy or sell securities as quickly as possible at the best available price.

Market orders are not guaranteed to be executed at the preferred price, but they are guaranteed to be executed quickly.

Market orders are often used when an investor wants to buy or sell the security quickly.

2. Limit Orders:

Limit orders request the investor to buy or sell the security at a specified price or better.

If the price cannot reach the specified price or better, the order will not be executed.

Limit orders are used when an investor wants to set a specific price for order execution.

3. Stop Orders:

Stop orders are orders that request the investor to buy or sell the security when the price reaches a certain level called the "stop price".

Upon reaching the stop price, the order becomes a market order.

Stop orders are often used to manage risk.