Types of Orders

 

When entering a trade, understanding the different types of orders—like market, limit, stop, and trigger orders—is essential for managing risk, controlling execution, and optimizing your trading strategy. Here I will briefly explain the most common ones for you

Market Order: A market order executes immediately at the best available price. It’s fast but offers no price control and can result in slippage. You can use a market order to buy or sell something instantly, but you may not get the best price.

Limit Order: A limit order sets a specific price to buy or sell and will only execute at that price or better, offering control but no guarantee of execution. You can set a limit order if you want to buy or sell at a price that is different from the current price. The downside however is that if your price doesn’t happen, your order won’t get triggered.

Stop Order: A stop order becomes a market order once a set price is reached, commonly used for stop-losses or breakout entries.

Trigger Order: A trigger order activates another order type (like market or limit) once a defined condition is met (usually a price), for example, if I want to place a limit order for a lower price to buy, but only after price has made a breakout, I would use a trigger order.

 

This is a quick read for some background context for a more in depth video that will be coming out soon. Thanks for reading, and as always, feel free to ask any questions you may have about the content of this article.