*Common Order Types*
- *Market Order*: Buy or sell a security at the current market price. Execution is guaranteed, but price isn't.
- Example: Buying 100 shares of a stock at the current market price.
- *Limit Order*: Buy or sell a security at a specific price or better. Price is guaranteed, but execution isn't.
- Example: Buying 100 shares of a stock at $50 or less.
- *Stop Order*: Buy or sell a security when it reaches a certain price (stop price), becoming a market order.
- Example: Selling 100 shares of a stock if it falls to $40 to limit losses.
- *Stop-Limit Order*: Buy or sell a security when it reaches a certain price (stop price), becoming a limit order.
- Example: Buying 100 shares of a stock if it reaches $50, with a limit price of $52.