#OrderTypes101

📘 Order Types 101: How Traders Place Orders

1. ✅ Market Order

What it does: Buys or sells immediately at the best available price.

When to use: When you want speed over price.

Pros: Fast execution.

Cons: May get worse price during volatile times (slippage).

💬 "Buy now, no matter the price!"

2. 🎯 Limit Order

What it does: Buys or sells only at a specific price or better.

When to use: When you want to control the price you pay/receive.

Pros: Better price control.

Cons: May not get filled if the price doesn't reach your limit.

💬 "Only buy if the price drops to $50."

3. 🛑 Stop Order (Stop-Loss Order)

What it does: Becomes a market order when the price hits a trigger.

Used for: Limiting losses or protecting profits.

Pros: Automatic exit when price drops.

Cons: Can get executed at a worse price than expected in fast markets.

💬 "Sell my stock if it falls below $45 to prevent big losses."

4. 🔒 Stop-Limit Order

What it does: A mix of stop and limit orders. Becomes a limit order when the stop price is reached.

Used for: More control than a stop order.

Risk: It may not fill