> ## Documentation Index
> Fetch the complete documentation index at: https://faction.trade/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Order types

> Market, limit, and stop orders explained with examples.

Faction Trade supports several order types to give you control over how and when your trades execute.

## Market orders

A market order executes **immediately** at the best available price in the order book.

**When to use:** You want to enter or exit a position right now and are willing to accept the current market price. Best for high-liquidity assets where the spread is tight.

**Things to know:**

* Execution is instant but the exact fill price depends on available liquidity
* You may experience **slippage** — a small difference between the expected and actual fill price
* The order summary shows estimated slippage before you submit

## Limit orders

A limit order only executes at your **specified price or better**. It sits in the order book until filled or cancelled.

**When to use:** You want a better entry price than the current market and are willing to wait. For example, if BTC is at $60,000 and you want to buy at $59,500, you would place a limit buy at \$59,500.

**Things to know:**

* Your order may not fill if the price never reaches your limit
* Limit orders remain active (good-til-cancelled) until filled or manually cancelled
* You can view and cancel pending limit orders in the **Open Orders** tab

## Stop orders

A stop order **triggers a market order** when the price reaches your specified threshold.

**When to use:** To protect against losses (stop-loss) or to enter a position when the price confirms a move in your expected direction (stop-entry).

**Things to know:**

* The trigger price is the price at which the stop activates
* Once triggered, it becomes a market order and fills at the best available price
* Slippage can occur after the stop triggers, especially in fast-moving markets

## Comparison

| Feature         | Market           | Limit                        | Stop                               |
| --------------- | ---------------- | ---------------------------- | ---------------------------------- |
| Execution       | Immediate        | At specified price or better | Triggers market order at threshold |
| Price control   | No               | Yes                          | Partial (trigger only)             |
| Guaranteed fill | Yes              | No                           | Yes (after trigger)                |
| Best for        | Quick entry/exit | Better prices                | Protection and breakout entries    |

<Note>
  All orders on Faction Trade execute through Hyperliquid's on-chain order book. There is no counterparty risk from the Faction Trade platform itself.
</Note>