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Order Types Explained: Market, Limit, and Stop in Plain English

Order Types Explained: Market, Limit, and Stop in Plain English

KAHROS Team

TL;DR

Quick Summary

  • Order types tell the market how to execute your trade, not just whether you buy or sell.
  • Market orders prioritize speed but give less control over the exact price.
  • Limit orders restrict the price but may not fill.
  • Stop orders become market orders when triggered; stop‑limits trigger a limit order.
  • Match the order type to your goal and the security’s liquidity to reduce execution surprises.

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