Types of Stock Orders
1. Market Order This is the Simplest of all stock orders. It will tell the broker to buy or sell a stock. It will get filled regardless of what the stock is trading at. This type of order can be a beneft to you if you just want to get in or out of a position. 2. Limit Order This order tells your broker only to buy or sell a security if a certain level is reached. For example, if a stock is trading at $73 and you place a limit order to buy at $70 that tells your broker not to buy the stock unless it goes to $70 or lower. This can be beneficial if you want a stock to reach a certain level before entering it. 3. Stop Order This order will turn into a market order once a stock hits a certain price. This order can be ideal if you are already in a position and want to limit the amount you can lose. 4. Stop Limit order This order turns into a limit order once a target price is reached. That makes it similar to a stop order. The only difference is the stock does not sell right away if the stop is hit. For this order to be filled it must meet the conditions of the limit order. 5. Contingency Order This order allows you to buy or sell a given security based on a certain condition. 6. Trailing Stop This order is for those who want to follow a given security up. For instance you buy a stock at $60 and put a trailing stop $4 lower than the stock. The stop will move higher and higher as the stock moves higher. So if the stock goes to $70 the stop will be at $66. Every strategy needs a different order type. If you want to strait out buy and sell stock without any conditions a market order works best. But if you want to be more specific you might want to look at the other options. Have A Great Story About This Topic?What Type of Stock Orders do you use? Do you use the simple market orders when placing a trade or do you use another type? How has it helped you?
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