Chapter 7. Order Types and How to Use Them
Being properly familiar with order types and when to use them can make a profound impact on trading results. Market prices and dynamics are ever changing, making every second count. Regardless of whether you trade online or through a broker, knowing the type of order you need to place and placing it accurately is vital.
Later in this chapter, I discuss proper phone order etiquette when placing trades with a broker or a trade desk. Whereas an experienced full-service broker can typically translate the intent of his clients, an order taker at a trade desk can’t—and it isn’t a good idea to leave anything to chance. Knowing exactly what you want and how to communicate your wishes is critical.