A market order is all about immediacy. This type of order allows you to buy or sell shares at the next available price. If the market order is to buy shares, the order will get filled at the next available “ask” or selling price.

If the market order is to sell shares, it is likely to get filled at the next available “bid” or buying price. Market orders are generally used when there is a need to get in or out of a position as quickly as possible.

To be clear, market orders may be fast and efficient, but that doesn’t mean the fill price will be ideal—and it may not be the same price you see on your screen when you click “send” to place the order.

A stop order (also referred to as a “stop-loss” order) allows you to enter or exit a position once it reaches a specific price level. When the activation price is reached, the stop order turns into a market order, automatically filling at the next available ask price (in the case of a buy stop order) or best bid price (in the case of a sell stop order).

If you’re looking to buy a stock at a price that’s above the current market price, you’d place a buy-stop order. Conversely, a sell-stop order is used to limit downside risk. If you bought shares of stock and are holding an open position, you can place a sell stop below the market price to exit your position to prevent or limit losses.

By placing a limit order, a trader essentially says, “I want to buy or sell a stock at a specific price or better.”

If you want to buy shares below the prevailing price, you will likely want to use a limit order. This means your order may get triggered if the stock trades at or below your target price. If all works out according to plan, you may get filled at or below the price you requested.

If you bought shares of stock and are looking to sell at a higher price, you might consider placing a sell limit. This is your classic “take profit” order. This order seeks to sell a stock at your price target or better, meaning higher.

Profits you stack up from trading are also known as “capital gains.” And the taxes you pay on those profits are known as “capital gains taxes.” In general, an individual will be required to pay more capital gains taxes if they have held a stock for less than a year before selling (short-term gains) than if they had held a stock for more than a year before selling (long-term gains). This tax structure is designed to encourage long-term investing.

While selling stocks for a profit will increase your tax bill, selling stocks for a loss will do just the opposite. To prevent people from taking advantage of this tax benefit, the IRS has a regulation called the “wash-sale rule.” A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. The wash-sale rule then prevents the investor from deducting a capital loss on the sale against any capital gains they might have accrued.