Master the fundamentals of trading by understanding when and how to use different order types effectively.
Before placing your first trade, you need to understand the different ways you can enter and exit positions. Order types are the fundamental tools that every trader must master.
A market order executes immediately at the best available price. Use market orders when you need to enter or exit a position quickly and are willing to accept the current market price.
A limit order allows you to specify the maximum price you'll pay (for buying) or minimum price you'll accept (for selling). These orders give you price control but may not execute if the market doesn't reach your price.
Stop orders (also called stop-loss orders) become market orders once a specified price is reached. They're essential for risk management and protecting your capital.
The best way to learn order types is through practice. Use Kinfora's trading simulator with $100K virtual capital to experiment with different order types without risking real money.