Order Types EXPLAINED
Stock Market Order Types EXPLAINED ( Limit / Stop / Stop Limit / Trailing Stop )
Stock Order Types: Limit Orders, Market Orders, and Stop Orders
Types of Stocks/ETFs orders include:
Market Order – An immediate order to be executed at the prevailing market price.
Limit Order – A conditional order to buy or sell, but only at a certain price, in an attempt to protect a potential profit or minimize a loss. Buy limit orders are entered with instructions to place the trade at or below a certain price. Likewise, sell limit orders contain instructions to execute the trade at or above a specific price.
Stop Quote Order –Investors generally use a stop quote order to either limit a loss or protect a gain on a security. A sell stop quote order is placed at a stop price below the current market price and will trigger if the national best bid quote is at or lower than the specified stop price. A buy stop quote order is placed at a stop price above the current market price and will trigger if the national best offer quote is at or higher than the specified stop price. Once triggered, a stop quote order becomes a market order (buy or sell, as applicable), and execution prices can deviate significantly from the specified stop price.
Stop Quote Limit Order – Investors generally use a stop quote limit order to either limit a loss or protect a gain on a security. A stop quote limit order combines the features of a stop quote order and a limit order. A sell stop quote limit order is placed at a stop price below the current market price and will trigger if the national best bid quote is at or lower than the specified stop price. A buy stop quote limit order is placed at a stop price above the current market price and will trigger if the national best offer quote is at or higher than the specified stop price. Once triggered, a stop quote limit order becomes a limit order (buy or sell, as applicable) at a specified limit price, and execution may not occur as the market price can move away from the specified limit price. More
Trailing Stop Quote Order – A trailing stop quote order is similar to a traditional stop quote order; however, the stop price will adjust with changes to the national best bid or offer for the security. The trail value can be a fixed dollar amount or a percentage. If the calculated stop price is reached, the order will activate and become a market order. More
Trailing Stop Quote Limit Order – A trailing stop quote limit order is similar to a traditional stop quote limit order; however, the stop and limit prices will adjust with changes to the national best bid or offer for the security. The trail values can be fixed dollar amounts or percentages. If the calculated stop price is reached, the order will activate and become a limit order using the calculated limit price. More
Market Order – An immediate order to be executed at the prevailing market price.
Limit Order – A conditional order to buy or sell, but only at a certain price, in an attempt to protect a potential profit or minimize a loss. Buy limit orders are entered with instructions to place the trade at or below a certain price. Likewise, sell limit orders contain instructions to execute the trade at or above a specific price.
Stop Quote Order –Investors generally use a stop quote order to either limit a loss or protect a gain on a security. A sell stop quote order is placed at a stop price below the current market price and will trigger if the national best bid quote is at or lower than the specified stop price. A buy stop quote order is placed at a stop price above the current market price and will trigger if the national best offer quote is at or higher than the specified stop price. Once triggered, a stop quote order becomes a market order (buy or sell, as applicable), and execution prices can deviate significantly from the specified stop price.
Stop Quote Limit Order – Investors generally use a stop quote limit order to either limit a loss or protect a gain on a security. A stop quote limit order combines the features of a stop quote order and a limit order. A sell stop quote limit order is placed at a stop price below the current market price and will trigger if the national best bid quote is at or lower than the specified stop price. A buy stop quote limit order is placed at a stop price above the current market price and will trigger if the national best offer quote is at or higher than the specified stop price. Once triggered, a stop quote limit order becomes a limit order (buy or sell, as applicable) at a specified limit price, and execution may not occur as the market price can move away from the specified limit price. More
Trailing Stop Quote Order – A trailing stop quote order is similar to a traditional stop quote order; however, the stop price will adjust with changes to the national best bid or offer for the security. The trail value can be a fixed dollar amount or a percentage. If the calculated stop price is reached, the order will activate and become a market order. More
Trailing Stop Quote Limit Order – A trailing stop quote limit order is similar to a traditional stop quote limit order; however, the stop and limit prices will adjust with changes to the national best bid or offer for the security. The trail values can be fixed dollar amounts or percentages. If the calculated stop price is reached, the order will activate and become a limit order using the calculated limit price. More
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