Market, Limit & Stop Orders
When each order type helps you — and when it hurts.
A market order prioritizes getting filled immediately. It is useful when exiting risk quickly, but it can slip during fast markets because you accept the best available price. Market orders solve urgency but sacrifice price control.
A limit order sets the worst price you are willing to accept. It gives price control but does not guarantee a fill. A buy limit sits at or below current price, and a sell limit sits at or above current price. Limit orders are useful for planned entries at specific levels.
A stop order becomes active when price trades through a trigger. Stops are commonly used for protection and breakout entries. The important rule is to know what each order prioritizes: market orders prioritize execution, limit orders prioritize price, and stop orders prioritize activation at a defined level.