Trading
Understanding order types
Market, limit, stop, stop-limit, take-profit, stop-loss, trailing stop, OCO — when to use which.
6 min read· Updated Jun 8, 2026
Order types let you tell the broker not just "trade this" but "trade this on these conditions." Picking the right one for the situation is the single biggest factor in execution quality.
The eight types we support
- Market
- Buy or sell at the best available price now. Use when speed matters more than slippage.
- Limit
- Set the price you’re willing to accept. The order rests until the market reaches your level.
- Stop
- Trigger a market order when price crosses a level. Common for opening positions on breakouts.
- Stop-limit
- Stop + limit in one — control execution price. Reduces slippage at the cost of execution certainty.
- Take-profit (TP)
- Close a position automatically at a target gain.
- Stop-loss (SL)
- Cap downside if a position moves against you.
- Trailing stop
- Stop that follows favourable price moves. Locks in gains while leaving room to run.
- OCO
- Two linked orders — one cancels the other on fill. Pair a target with a stop in a single submission.
When to use which
You just want to get in or out
Use a market order. Slippage is usually a fraction of a percent on liquid instruments and you don’t have to babysit it.
You have a price in mind
Use a limit order. Set your level and walk away. The risk: if the market never reaches your level, the order never fills.
You want to protect a position
Set a stop-loss the moment you enter the trade. The single best discipline tool in trading.
You want to take profit at a target AND protect downside
Use an OCO — one cancels the other. When one side fills, the other is cancelled automatically.
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