#GENIUSActPass

**Order Type 101: Understanding Its Role in Trading**

Order Type 101 refers to a basic yet essential concept in trading, representing a standard market order. When an investor places an Order Type 101, they are instructing their broker to buy or sell a security immediately at the best available current price. This order type is straightforward, ensuring quick execution but offering no price guarantees, as market fluctuations may affect the final trade price.

Key characteristics of Order Type 101 include:

- **Speed**: Executes instantly, ideal for liquid markets.

- **Simplicity**: No complex conditions, making it beginner-friendly.

- **Price Uncertainty**: Slippage may occur during high volatility.

Traders often use Order Type 101 when prioritizing execution over price precision, such as in fast-moving markets. However, in illiquid or highly volatile conditions, limit orders (specifying a price) may be preferable. Understanding Order Type 101 is foundational for effective trading strategies.