Trading Basics
Market, Limit, and Stop Orders Explained
Know the difference between order types and how to use each to enter and exit trades precisely.
Key rules
- Market orders fill immediately but risk slippage
- Limit orders give price control but may not fill
- Stop orders trigger at a price level, useful for SL and breakout entries
- Use limit orders in low-volatility conditions for better fills
- Always confirm your order type before submitting
A market order executes immediately at the best available price — fast, but you accept slippage. A limit order executes only at your specified price or better, giving you price control but no guarantee of fill. A stop order triggers a market order once price reaches a specified level, commonly used for stop-losses and breakout entries.
Choosing the right order type directly affects your entry price and risk. Using limit orders for entries in liquid markets improves average cost; market orders suit fast-moving breakout conditions.