Market, limit or stop order: which do you use, and when?

Three order types cover most trading. A market order fills now at the current price, a limit order fills only at your price or better, and a stop order turns into a market order once a price is reached.

New traders usually default to market orders, but there are situations where each type fits better. Which do you use for:

• entering a trade
• taking profit
• setting a stop-loss

The order types guide explains how each fills in fast markets.