Market Order, Limit Order, Stop-Loss Order

• Market Order: Buy/sell at the most ideal that anyone could hope to find price
• Limit Order: Buy/sell at a predefined price
• Stop-Loss Order:Naturally sell when a stock arrives at a specific price to restrict losses

Example: Putting in a Market Order is like requesting the most readily accessible seat in an eatery, while a Limit Order resembles mentioning a particular table. A Stop-Loss Order resembles advising the server to present to you the check in the event that the food isn't as you would prefer.

Aspect	Market Order	Limit Order	Stop-Loss Order
Definition	An order to buy/sell at the most ideal that anyone could hope to find price	An order to buy/sell at a predefined price	An order to naturally sell when a stock arrives at a specific price to restrict losses
Execution	Executed rapidly at the on-going market price.	Executed only when market reaches the specific price point.	Triggered when the market price reaches the stop price and converts to a market order.
Purpose	To ensure rapid execution regardless what the price is.	To get an pre-defined price or better for buying/selling.	To reduce losses by selling off a position by itself at a predefined price.
Price Certainty	No guarantee of the exact price it relies on the market.	Price is certain if executed, but execution is un-certain.	Price is not certain as it changes to a market order once triggered.
Risk	Risk of undesirable execution price in frequently changing markets.	Risk of non-execution of the order iif conditions are not matched.	Risk of heavy loss if the market falls rapidly after triggering.
Best For	Traders who needs rapid execution over price.	Traders who needs specific entry/exit prices.	Traders who are planning to control losses by itself.

How Orders are Executed in the Market

At the point when a request is put, brokers course it to trades where it coordinates with existing buy/sell orders in light of price.

Example: Consider it an intermediary uniting individuals searching for accomplices, the trade matches trade orders in light of their inclinations.