It seems you are interested in the concept of Order Types in trading or investing. Here is a simplified explanation of the basic types of orders used in financial markets:
1. Market Order:
- Executes immediately at the best available price.
- Usually used for quick buying or selling.
- The price may not be predetermined.
2. Limit Order:
- Sets a specific price for buying or selling.
- Executes only if the price reaches the specified level or better.
- Used to control the execution price.
3. Stop Order:
- Activated when the price reaches a certain level known as the stop price.
- Usually used to stop losses or to protect profits.
- After activation, it converts to
