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You've chosen a stock or ETF you want to invest in, and you know how many shares you want to buy. Now, you've just got to place the order. For novice investors, that may be trickier than it seems because before placing that order, they have to choose an order type. Simply put, order types are instructions to your broker about how to execute your trade. You don't need to know the complicated jargon or hand signals traders used to use on the floor of the New York Stock Exchange, but you should understand the basic order types and how they affect your trade. Let's focus on the basics of how an order is placed, then three common order types: market orders, limit orders, and stop orders. First up: how an order is placed. When you select buy or sell, your order is sent to your broker, who attempts to fill it on the market. Prices can change constantly, and the system for routing orders has lots of moving parts, all of which impact how quickly and at what price your order is actually filled. Using the right order type can impact these factors, and make a big difference in whether your trade works the way you intended, so it's important to understand the main order types. Let's start with market order. This order type indicates that you want your order filled immediately at the next available price. If prices are changing rapidly, the next available price could be different than the price quoted when you initially placed the order. Investors who use market orders tend to be more concerned about the speed of a trade than the price. The lack of restriction on price means this order type has the best chance of being filled, but it also has the risk of being filled at a different price. For example, say an investor places an order to sell a stock at $75. But if the price is plummeting and other investors are also trying to sell, the price could drop by the time the order is filled. Likewise, if an investor places a market order after hours, the price could be very different when the order is filled at market open. Because of this, investors typically use market orders during trading hours and in highly liquid markets. This increases the chances of getting an order filled closer to the requested price. If your priority is to buy or sell at an exact price or better, you may want to use a limit order instead. With a limit order, you specify a price, and the order won't be filled until the stock can be bought or sold at that price or lower. However, because of the price restriction, there's no guarantee the order will be filled quickly or at all. Investors generally use limit orders when they have a target entry or exit price and are willing to wait for the market to move in their favor. Let's say, for...