Order Types and Execution: Market, Limit, and Stops
Learn when to use market orders, limit orders, stop entries, and stop losses with a realistic view of slippage.
Overview
Execution is part of your edge. The same trade idea can produce very different results depending on how you enter and how the market is moving at that moment.
How each order type behaves
Market orders prioritize immediate execution. Limit orders prioritize price. Stop orders trigger only when price reaches a level that confirms movement.
None of them are universally best. The right choice depends on the setup, liquidity, and how urgent the exposure is.
The reality of slippage
Slippage is normal in fast or thin markets. It becomes more visible during news, session changes, or volatile instruments.
Instead of pretending it will not happen, account for it in your risk model and setup selection.
Topics in this guide
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