#OrderTypes101 In trading, an order type defines how a trader wants to buy or sell a financial asset. The most common order type is the market order, where the trade is executed immediately at the best available price. It’s fast but doesn’t guarantee the price. A limit order allows traders to set a specific price at which they want to buy or sell. The trade only occurs if the market reaches that price, giving more control but no guarantee of execution. A stop order (or stop-loss) is triggered when the asset hits a certain price, helping to minimize losses. Stop-limit orders combine features of both stop and limit orders, adding more control over execution and price. Trailing stop orders automatically adjust the stop price based on market movement, locking in profits. Advanced order types help manage risk, automate trading, and improve strategy. Understanding order types is crucial for effective and informed trading decisions.