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Market Order Types Explained

Learn the difference between market, limit, stop, and stop-limit orders.

StockLrn Team
5 min read
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Choosing the Right Order Type

Market Order

Executes immediately at the best available price. Use for liquid stocks when speed matters more than price.

Limit Order

Sets the maximum price you will pay (buy) or minimum you will accept (sell). Guarantees price but not execution.

Stop Order

Becomes a market order when the stop price is reached. Used for stop-losses or breakout entries.

Stop-Limit Order

Becomes a limit order when the stop price is reached. Offers more control but may not execute in fast markets.