Market, Limit, and Stop Orders
An education note on common order types and why order labels do not remove execution risk.
Order types affect execution behavior, but they do not make trading outcomes certain.
Market orders
A market order seeks immediate execution. The tradeoff is that the final execution price can differ from the last displayed price, especially when prices move quickly.
Execution can be fast and still uncertain.
Limit orders
A limit order sets a price condition. That can help control the worst acceptable price, but it also means the order may not execute.
The balanced explanation is simple: a limit can constrain price, but it cannot force the market to trade there.
Stop orders
A stop order activates when the stop price is reached and can become a market order. That means the final fill can still differ from the stop price.
Order type names describe mechanics; they do not determine what fits a reader's personal account.