#OrderTypes101
In trading, understanding order types is crucial for executing trades effectively. Here are the primary types:
- *Market Order*: Executes a trade at the current market price, ensuring immediate execution.
- *Limit Order*: Sets a specific price for buying or selling, executing only when the market reaches that price.
- *Stop-Loss Order*: Automatically sells a security when it falls to a certain price, limiting potential losses.
- *Stop-Limit Order*: Combines stop-loss and limit orders, executing a trade at a specific price after a stop-loss trigger.
- *Trailing Stop Order*: Adjusts the stop-loss price as the market price moves, locking in profits.
Mastering these order types helps traders manage risk and achieve their investment goals.