Category: 03. Order Type

Stop Order

How a Stop Order Works Investors and traders can execute their buy and sell orders using multiple order strategies to limit the chance of loss. The basic market order fills an order at the ongoing market price of the security. A stop order is instead placed when an investor or trader...
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Limit Order

What Is a Limit Order? A limit order is a type of order to purchase or sell a security at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will...
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Market Order Definition

How Market Orders Work A market order is considered the most basic of all orders. It is meant to be executed as quickly as possible at the current asking price for security. That is why certain brokerages include trading applications with a buy/sell button. Hitting this button generally executes a...
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