Order type

An order type in trading refers to the specific instructions a trader gives to buy or sell an asset, defining how and when the trade should be executed. Common types include a market order (immediate buy/sell at current price), limit order (buy or sell at a specific price or better), and stop order (trigger a trade once the price reaches a certain level). Different order types help traders manage risk, control costs, and execute strategies more effectively. Choosing the right order type depends on their goals, the market conditions, and desired price outcomes.