Published : 16 June 2023
An order type is a pattern that investors use to direct their stockbrokers to carry out a trade on the exchange. Their trading goal will determine this.
A market order is a directive to buy or sell shares at the going rate in the market. Although it does not guarantee a specific price, it guarantees that the trade will be executed (based on the availability of buyers and sellers).
With a limit order, a trader specifies the exact price at which he is prepared to buy or sell shares. The order will only be filled at or above the specified limit price if it is filled. There is no assurance that a limit order will be executed.
An order to buy or sell stocks when the stock price reaches the specified trigger price or stop price is known as a stop-loss order.
An order that is placed after market close and when markets are closed is known as an after-market order.
For intraday trading, a cover order is an advance order that lowers the possibility of an unlimited loss. Two separate orders are simultaneously placed when using a cover order.
By using a GTC order, a trader can place a buy/sell order on a stock that is active until it is filled or cancelled by the trader. A trader may also specify the order's validity expiration date.
An order that is placed as Immediate or Cancel is either executed right away or cancelled (if it is not executed).
Similar to a stop-loss order, a trailing stop-loss order has a moving stop price. If the stock price increases in your favour, the stop-loss price moves along with that movement.
A bundle of three separate orders is called a bracket order. Complete automation of stock purchases and sales, profit booking, and loss coverage (if any) are all provided.