Types of
Stock Trading Orders

You have to understand different types of Stock Trading Orders and their implications. You have to be familiar with the procedures of placing the orders. These are essential for successful stock trading career.

Once you are ready with your 'Trading Action Plan', based on your own technical or fundamental research, next immediate action is to place your trading orders with your broker.

What are trading orders?

Stock Trading Orders are a set of instructions, given to the stock broker, regarding buying or selling a stock.

How to place orders with your broker?

Having analyzed and decided to enter into a trade, you place your order online in your broker's trading software. Make yourself familiar with the software. Otherwise you may place a sell order instead of a buy order, by pressing a wrong button.

You can place your orders offline by calling your broker over the phone or faxing or emailing.

What are the different types of stock trading orders?

The different types of share trading orders are:

  • All or None Order
  • It is a conditional request made to the broker (or the system) to buy or sell a required number of shares at particular price, only if full quantity of shares are available.
  • GTC Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or canceled.
  • GTD Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or till a predetermined date.
  • IOC Order
  • Immediate or Cancel is a conditional request made to the broker (or the system) to execute the transactions immediately or to cancel it.
  • Limit Order
  • Limit Trading Order is a conditional request made to the broker (or the system) to buy or sell a stock at a particular price or at a better price.
  • Market Order
  • Order to buy or sell at market is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price.
  • Stop Loss Order
  • Order at stop is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price.
  • Stop Limit Order
  • Order at stop limit is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price but with in a predetermined limit price.
  • Minimum Fill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only when a minimum number of shares are available.
  • One Cancels Other Order
  • This is a conditional request made to the broker (or the system) to execute one of the two orders, which ever meets the required parameter first, and cancel the other.
  • Market on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price.
  • Limit on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price but with in a limit price.
  • Market on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price.
  • Limit on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price but with in a predetermined limit price.
  • Market If Touched Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market price only after the stock trades at particular predetermined price.
  • Iceberg Order
  • This is a conditional request made to the broker (or the system) to buy or sell a large required quantity of stock, but in smaller predetermined quantity.
  • Fill or Kill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only if the full quantity of shares are available, or else to cancel the order.

Does these stock trading orders have priorities?

Orders are executed based on a first come first served rule and on their priority rule. Market orders receive highest priority, followed by limit orders.

Conditional orders generally get priority based on the time, when the condition is met. 'Iceberg orders' and 'dark pool orders' (which are not displayed) are given lower priority.

Do the different stock trading orders cost us differently?

Some brokers may charge different fee for different type of trading order. For example, they may charge more for a limit order than to market order. They may charge more for all or none order or a conditional order. Some brokers charge you an extra fee for offline orders.

You may go long, that is first buying to sell later, or you may go short, that is first selling to buy back later. Once you place your order you should follow your trades until it is closed.

Once you let your child, off your hand, where ever you may be, what ever you may be doing and what ever may be your situation, keep an eye on her. 



Click here to go back from Stock Trading Orders to Home
 














New! Comments

Have your say about what you just read! Leave me a comment in the box below.

About Us

Your Compliments are here

Stock Trading Infocentre Book Store

Tomorrow's market is not just unknown,
it is unknowable.

It is easy to become rich in Stock Market.
It is much more easier to go broke.

The stock market is forever evolving
it is Dynamic.
Because of its complexity,
a stock trader is Always a Student,
Never a Master.