Market, limit, stop, and stop-limit orders
Purpose, trade-offs, and execution risk.
Market, limit, stop, and stop-limit orders
No order type solves every problem. Market orders prioritize speed; limit orders prioritize price control; stop orders use triggers; stop-limit orders combine a trigger with a price boundary.
Key idea: Choose an order type based on the trade-off between urgency, price control, and the risk of not executing.