#OrderTypes101

Market Order

- *Definition*: Buy or sell a security at the current market price.

- *Execution*: Immediate execution at the best available price.

Limit Order

- *Definition*: Buy or sell a security at a specified price or better.

- *Execution*: Executed only when the market price reaches the specified limit price.

Stop-Loss Order

- *Definition*: Sell a security when it falls to a certain price to limit losses.

- *Execution*: Triggered when the market price reaches the stop-loss price.

Take-Profit Order

- *Definition*: Sell a security when it reaches a certain price to lock in profits.

- *Execution*: Triggered when the market price reaches the take-profit price.

Other Order Types

- *Stop-limit order*: Combines stop-loss and limit orders.

- *Trailing stop order*: Adjusts the stop-loss price based on market movements.

- *Fill-or-kill order*: Executed immediately or canceled.

Understanding order types can help you:

- *Manage risk*: Limit losses and lock in profits.

- *Optimize trading*: Execute trades at desired prices.

- *Improve trading strategy*: Use order types to refine your trading approach