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Then there's the **stop-loss order**. This is a type of order that helps you manage risk. A stop-loss order becomes a market order when the stock price hits a certain level (the stop price). It's designed to limit your losses. For example, if you bought a stock at $50 and set a stop-loss at $45, if the price drops to $45, your stop-loss order triggers a market order to sell your shares. The advantage is that it helps protect your investments from significant drops. Keep in mind that there are many more types of orders, but these three are the most important and useful for the average investor.
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