market, limit, and stop loss. Provide examples of each in your own words.

Homework assignmnt 7 fin | Business & Finance homework help

Market orders, limit orders, and stop loss orders are all types of trading instructions given to brokers when buying or selling securities. A market order is an instruction to buy or sell a security at the best available price in the current market. A limit order gives investors more control over the price they pay for a security by specifying the maximum or minimum amount they are willing to spend on it—this type of order will only be executed if and when such conditions are met.

Stop loss orders, on the other hand, are used to minimize losses by automatically closing out positions once a certain threshold has been reached. This can help prevent further losses from occurring should market conditions turn against an investor’s favor—allowing them instead to cut their losses early and move on without further damage.

Overall then it appears clear that each type these instructions plays important role ensuring sound financial decisions made time . By understanding differences between them better able plan ahead develop strategies best suited individual needs resulting improved returns investments period.