#OrderTypes101

Types of orders. Help for beginners

1. Market orders: These orders are executed immediately at the best available price. For example, if a buyer places a market order, it will be matched with the lowest asking price in the order book.

2. Limit orders: A limit order allows investors to specify the price at which they are willing to buy or sell. This order will only be executed if the market price reaches the investor's limit price, ensuring control over the execution price but not guaranteeing that the transaction will be executed.

3. Stop orders: These are conditional orders submitted to buy or sell an asset once its price surpasses a certain point, triggering a market order or a limit order. Stop orders are often used to minimize losses, making them very useful for risk management.