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Stock Order Types Explained: Market vs. Limit Order

By 

Nathan Reiff

Updated March 31, 2025

Fact checked by 

Vikki Velasquez

Part of the Series

How to Invest with Confidence



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Stock trading plays a key role in financial markets. Publicly traded companies sell stock to pay off debt, launch new products, and expand operations, while investors buy shares to own a piece of a company, exert some influence over the company’s decisions, and, most importantly, attempt to build wealth through capital appreciation and/or dividend payments.1

Below, we offer a guide to the fundamentals of stock trading, including types of trading, key strategies, and navigating the regulatory environment.

Key Takeaways

Stock trading involves buying and selling shares of ownership in companies.

Different types of trading include day trading, swing trading, and long-term investing.