# Order Types: Market, Limit, ...

The most common types of orders are **market orders**, **limit orders**, and **stop-loss orders**.

### **Market Order** 

A market order is an order to buy or sell a security, asset or cryptocurrency immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid (for a sell order) or ask (for a buy order) price. However, it is important for you as an investor or trader to remember that the last-traded price is not necessarily the price at which a market order will be executed.

### **Limit Order** 

A limit order is an order to buy or sell a security, asset or cryptocurrency at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Example: You want to purchase shares of ABC stock for no more than $10. You could submit a limit order for this amount and this order will only execute if the price of ABC stock is $10 or lower.

### **Stop Order or Stop-Loss Order** 

A stop order, also referred to as a stop-loss order is an order to buy or sell a stock, asset or cryptocurrency once the price of the stock reaches the specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order.

### **Buy Stop Order** 

A buy stop order is entered at a stop price above the current market price. Investors or Traders generally use a buy stop order to limit a loss or protect a profit on a stock, asset or cryptocurrency that they have sold short. A sell stop order is entered at a stop price below the current market price. Investors or Traders generally use a sell stop order to limit a loss or protect a profit on a stock they own.

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Source: [SEC](https://www.investor.gov/introduction-investing/investing-basics/how-stock-markets-work/types-orders)