# VOOI:orderTypes

## Understanding Order Types

Orders are used either to open a position or to close one:

1. **Orders to open** a position are used to enter the market.
2. **Orders to close** a position are used to exit an existing trade (position).

Different order types determine how a position is opened or closed. Some are used to enter the market, while others are used to exit a position or manage risk.

This article explains the main order types supported in VOOI and the differences between them.

## Order Types for Opening Positions

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In the Order Panel, choose the order type before placing an order to open a position:

**Market** (instant execution)

* A market order opens a position immediately at the best available market price.
* **Execution:** Filled immediately at the best available market price. In fast-moving markets, the final price may differ slightly from the displayed price.
* **Scenario:** It is used when entering the market quickly is more important than getting a specific price.&#x20;

**Limit** (execution at chosen price)

* A limit order opens a position only at your chosen price or at a better price.
* **Execution:** Filled only if the market reaches the specified limit price or a better price.
* **Scenario:** It is used when you want more control over your entry price. The order will remain open until the market reaches that price, unless it is canceled.

**Stop Limit** (order triggers when price reaches a level)

* A stop limit order places a limit order after the market reaches a specified stop price.
* **Execution:** When the specified stop price is reached, a limit order is placed. That order is filled only if the market then reaches the specified limit price.”.
* **Scenario:** It is used when you want the order to activate only after price reaches a certain level, while still keeping control over the maximum or minimum execution price.

## Orders Types for Closing Positions

Orders to close a position are used to exit an existing trade.

**Where in the trading terminal** **to place orders to close positions:**

* **Market order** to close a position is placed from the **Open Positions** section:

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* **Take profit and stop loss (TP/SL)** can be set either when opening a position in the **Order Panel** or later for an open position in the **Open Positions** section:<br>

  <div align="left"><figure><img src="https://3071033198-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXCba6CdwFKbzdASxvC5H%2Fuploads%2FGQfpaxTjMcLjyiLgsvXE%2Fimage.png?alt=media&#x26;token=2cbeabc9-28d8-4e0b-bccb-5d7712cecb8c" alt="" width="563"><figcaption></figcaption></figure></div>

**Market**&#x20;

* A market order closes a position immediately at the best available market price.
* **Execution:** Filled immediately at the best available market price. In fast-moving markets, the final price may differ slightly from the displayed price.
* **Scenario:** It is used when you want to exit a position quickly without waiting for a specific price.

**Take Profit (closes a position in profit)**

* A take profit order closes a position automatically when the market reaches a target price in your favor.
* **Execution:** Triggered when the market reaches the take profit price. The position is then closed according to the order settings.
* **Scenario:** It is used when you want to secure profit automatically without monitoring the market continuously.

**Stop Loss (closes a position to limit losses)**

* A stop loss order closes a position automatically when the market reaches a specified price against your position.
* **Execution:** Triggered when the market reaches the stop loss price. In fast-moving or low-liquidity markets, the final closing price may differ from the trigger price.
* **Scenario:** It is used to limit losses and manage risk automatically