Types of Orders in Trading

When you enter the world of trading, it is essential to familiarize yourself with the different types of orders you can use to manage your trades intelligently and with control.

The first type is Market Order, which is used to execute the trade immediately at the best available price in the market. This type is fast, but it does not guarantee the price you see at the moment you click "Buy" or "Sell," especially in volatile markets.

The second type is Limit Order, which allows you to specify the price at which you want to buy or sell. The order is executed only if the price reaches the limit you set, giving you better control, but it may never be executed if the market does not reach that price.

As for Stop Order, it is used to minimize losses or protect profits. This order is activated when the price reaches a certain level, then it turns into a market order.

Understanding these types and using them correctly helps you reduce risks and improve your trading strategy.