Types Of Stock Market Orders

When it comes to the stock market there are numerous amounts of ways to execute an order to buy or sell and order. Most people are familiar with the theory of buying or selling at a set price and then moving on… but how your options have grown.

The following are a list of some of the more popular stock ordering options that are available to traders.

Market Order - Choosing market for the order type indicates you wish to seek an immediate execution for your order at the current market price. By using this type of market execution, you are letting the price of action being determined by your broker. While these orders are easy to use, there is a downfall. Because you do not specify a stock price, technically the purchase price could be anything.

Limit - Choosing limit for the order type indicates you wish to seek the purchase or sale of a stock at a specific price or better. Unlike market, limit orders allow you to lock in the stock at your specific price.

Stop Market – Choosing stop market for the order type indicates you want your stop order to become a market order once a specific price has been reached. For example, if stock x sits at $20 and you want to buy it once it passes $22, then your stock market order would be set at $22.

Stop Limit – Stop limit is a combination of stop market and limit orders. Once the activation price is set, then your limit order goes into effect.

Trailing Stop – Trailing stops are protective orders. They are usually used as a form of stops to protect profits. By choosing some percentage points or actual dollar figures, the trailing stop will move with your order and execute trade when criteria is met.

Broker Center – Find the stock broker that meets your needs.