Types of orders
Traders can place various types of buy or sell orders. Some orders guarantee immediate execution, while others may state a price threshold or other conditions that trigger execution. Orders are typically valid for the same trading day unless specified otherwise.
A market order guarantees immediate execution of the order upon arrival to the trading venue, at the price that prevails at that moment. In contrast, a limit order only executes if the market price is higher (lower) than the limit for a sell (buy) limit order. A stop order, in turn, only becomes active when the market price rises above (falls below) a specified price for a buy (sell) stop order. A buy stop order can be used to limit losses of short sales. Stop orders ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access