Order types tell an exchange when and how to attempt a trade. They do not remove market risk, and an order that triggers is not always filled completely at the expected price.
Market and limit orders
A market order seeks immediate execution against the best available orders. It prioritizes execution but can fill at several prices, especially in a thin or fast-moving market.
A limit order sets the worst acceptable price: the maximum for a buy or the minimum for a sell. It provides price control but may remain unfilled or only partially fill.
Price control and execution certainty trade off
A market order prioritizes execution against available liquidity. A limit order sets a price boundary but may remain unfilled if the market never reaches it.
Stop and stop-limit orders
A stop order activates after a market reaches a chosen trigger. A stop-limit order then posts a limit order, so a rapid move can pass through the limit without filling it.
Exchanges implement order types and trigger references differently. Read the platform’s current rules, preview fees, and understand whether the order is for a spot or derivatives market.
A stop price is a trigger, not always the final price
Once triggered, a stop order may become a market or limit order. Fast markets and limited liquidity can therefore affect the eventual execution.
Sources
Educational information, not investment advice.