Market, limit, stop: choosing the right order type

A practical guide to the order types every trader should master, with examples across volatile and calm markets.

Order types are the vocabulary of trading. Using the wrong one can turn a good idea into a bad fill.

Market orders prioritise speed over price. Limit orders prioritise price over speed. Stop orders help you manage risk by triggering only when a level is breached.

The right choice depends on liquidity and volatility. In fast markets, a limit order protects you from slippage; in deep, liquid markets, a market order gets you in immediately.