#OrderTypes101 > Understanding the types of orders in trading is essential for operating efficiently and protecting your capital. A market order is executed at the current price, useful when you need to enter or exit a position quickly. A limit order allows you to set the price at which you want to buy or sell, ideal if you are looking to take advantage of specific prices. The stop-limit order is useful for reducing losses or securing profits, combining an activation price with a limit price. There is also the stop-market order, which is executed at the market price once a certain point is reached. Each order has its own strategy and appropriate timing.
