#OrderTypes101 You said:

Tell me all about order types 101

they are fundamental concepts in trading, whether you're dealing with stocks, options, or even crypto. They help traders specify how they want to enter or exit positions in the market. Understanding the different order types can help you execute trades more efficiently and align themHere's a breakdown of the topic

1. Market Order

What it is: A market order is an order to buy or sell a security immediately at the best available price.

When to use it: Use this when you want to execute a trade quickly and are willing to accept the current market price.

Pros:

Fast execution.

Guarantees execution.

Cons:

Price uncertainty—especially in fast-moving or volatile markets, you might get a worse price than expected.

2. Limit Order

What it is: A limit order sets a specific price at which you want to buy or sell. The order will only be executed if the market price reaches or improves upon your specified price.

When to use it: Use it when you're not in a rush and are willing to wait for the price you want.

Pros:

Price control—you're guaranteed not to pay more than you want when buying or receive less than you want when selling.

Cons:

The order may not get filled if the market doesn’t reach your price.

3. Stop Order (Stop Loss)

What it is: A stop order becomes a market order once a specified price (the stop price) is reached. It is often used to limit losses or lock in profits.

When to use it: When you want to exit a trade if the market moves against you.

Pros:

Helps manage risk by automatically triggering a sale if the price goes against you.

Cons:

Like market orders, it can execute at a worse price than expected in volatile markets.

4. Stop-Limit Order

What it is: This is a combination of a stop order and a limit order. When the stop price is triggered, a limit order is placed at a specified price.When you want to limit your losses but still have control over the price you’re willing to sell or buy

Cons:

The order might not be filled if the market price skips your limit price.