#OrderTypes101

Order Types in Trading: A Brief Guide

In trading, order types determine how and when trades are executed. A **market order** buys or sells immediately at the best available price. A **limit order** sets a specific price to buy or sell, executing only when that price is reached. **Stop orders** trigger a market order once a certain price is hit, often used to limit losses. **Stop-limit orders** combine stop and limit features, offering more control. **Trailing stops** adjust automatically with price movements to lock in profits. Understanding order types helps traders manage risk, control execution, and better navigate volatile market conditions.