Order Types
Orders is an art in itself. Beginners often do not know when to use market orders and limit orders. Different orders are used in different market conditions. But the limit order is one that is more versatile. Understanding a limit order is essential for business success. I will only discuss the case for the purchase, the reasoning and the mechanism is the same for shorting.

Market Order
In a market order, which are basically instructing your broker to buy at the current price. You can not set the price you wish to purchase. Market orders can be prone to slippage in fast moving markets. For example, if you give a market order to buy 10 lots, three lots can be filled at $ 10, another 3 lots at $ 10.50 and the remaining 4 lots at $ 11.00. In general, using a market order when we have to enter or exit a fast market, for example, when the market suddenly moves against you drastically.

Limit Order
A limit order is different from a market order in which you can specify the price at which you want to buy. For example, if you specify that you want to buy 2 lots at $ 10, you will not get a fill at prices above $ 10. Hence a possible scenario is to get both 2 lots at $ 10, or  BATCH 1 each at $ 10 and $ 9.50. The beauty of the limit order is that you will not get a fill unless the price is better than specified.

Stop Order
A suspension order is best known as a stop loss order. In the loss stop day trading is essential for their survival. Some merchants do not set a stop-loss, since they are the regulating trade in real time. They feel they can act quickly enough to close the position that the situation is against them. However, in dynamic markets may well lose $ 200 or more on a single contract in minutes. Set a stop loss order removes the psychological doubts out of a position. From my experience, this is an absolute requirement, please master it and use it to their advantage.

Suppose we are now much less $ 10 and set the stop loss at $ 8, you are instructing your broker to sell at market price when the price falls to $ 8. When the price is above $ 8, the stop-loss order remains inactive, it becomes a market order when the price reaches $ 8 and will save you from further losses. Note that a stop loss order is always used to exit a position. Therefore if you are long, stop-loss order will give instructions to sell. If you are short, stop-loss order will give instructions to buy.

Stop Limit Order
A limit order is similar to a stop loss order, unless it becomes a limit order at a predetermined price. For example, suppose you are long at $ 10 and sets a limit to stop selling at $ 8, when the price falls to $ 8, the order becomes a limit order at $ 8. Remember that to limit a landfill will ensure better than the price you specify. Therefore, a limit order at $ 8 means you get a fill at $ 8 or more.