What are Market Order, Limit Order and Stop-loss order ?

• Market Order: Buy/sell at the current price of the stock.
• Limit Order: Buy/sell at pre-determined price of the stock.
• Stop-Loss Order: Type of limit order to minimise the risk by selling automatically if stock has fallen to a specific price.

Example: Let’s say you went to a cafe and you got a table which was available at that moment, it was not of your choice, but Limit-order including stop-loss order are like pre- booking the table of your choice.

Aspect	Market Order	Limit Order	Stop-Loss Order
Definition	Buy/sell at the current price of the stock.	Buy/sell at pre-determined price of the stock.	Type of limit order but specially minimise the risk.
Execution	It’s executed rapidly.	Executed only when a specific value is reached.	Executed when a specific price range is crossed.
Purpose	To buy/sell immediately	To get the desired price	To control your losses for risk management
Price Certainty	No guarantee of any exact price.	Certain if executed but execution is not guarantee.	Price is not certain as market value may change after trigger.
Risk	Risk of uncertain value of stock.	Risk of non-execution of the order.	Risk of heavy loss if market falls rapidly after the trigger.
Best For	Rapid Execution	Specific entry/exit points	For risk management

How execution of order takes place in stock market ?

When a trader puts an order of buy/sell it goes to broker where the requests of buy are matched with requests of sell and vice versa.