#OrderTypes101 In trading, order types determine how your trades are executed. Here are some common order types:

## 1. Market Order

- *Definition*: A market order is an instruction to buy or sell a security at the current market price.

- *Characteristics*: Executed immediately, but the price may not be guaranteed.

## 2. Limit Order

- *Definition*: A limit order is an instruction to buy or sell a security at a specific price (limit price) or better.

- *Characteristics*: May not be executed immediately, but the price is guaranteed.

## 3. Stop-Loss Order

- *Definition*: A stop-loss order is an instruction to sell a security when it falls to a specific price (stop price) to limit potential losses.

- *Characteristics*: Can help limit losses, but may be triggered by short-term price fluctuations.

## 4. Take-Profit Order

- *Definition*: A take-profit order is an instruction to sell a security when it reaches a specific price (take-profit price) to lock in profits.

- *Characteristics*: Can help secure profits, but may miss potential further gains.

## 5. Stop-Limit Order

- *Definition*: A stop-limit order is a combination of a stop-loss order and a limit order.

- *Characteristics*: When the stop price is reached, the order becomes a limit order, which may not be executed if the price moves away from the limit price.

## 6. Trailing Stop Order

- *Definition*: A trailing stop order is an instruction to sell a security when it falls by a certain percentage or amount from its highest price.

- *Characteristics*: Can help lock in profits while allowing for price fluctuations.

## 7. Fill or Kill (FOK) Order

- *Definition*: A FOK order is an instruction to execute the entire order immediately, or cancel it if it cannot be filled.

- *Characteristics*: Used for large trades or when immediate execution is crucial.

## 8. All or None (AON) Order

- *Definition*: An AON order is an instruction to execute the entire order, or none of it.

- *Characteristics*: Used when you want to ensure that your entire order is filled, or none of it is.

Understanding these order types can help