Order Types: Market, Limit, and Stop Orders

A market order buys or sells immediately at the best available current price. It's the simplest order type, but you have limited control over the exact price you get, especially in fast-moving markets.

A limit order only executes at a specific price or better — a buy limit sits below the current price, a sell limit sits above it. It's how traders enter a position at a level they've planned for in advance, rather than chasing the current price.

A stop order triggers a market order once the price reaches a specified level — commonly used for stop-losses or for entering a breakout once price moves past a certain point. Understanding the difference between these order types is a prerequisite for almost every other strategy on this site.