#OrderTypes101 Order types are instructions that traders give to brokers or exchanges to buy or sell assets under specific conditions. Here's a rundown of common order types:
1. Market Order
- Buys or sells an asset immediately at the current market price.
- No price specification is required.
2. Limit Order
- Buys or sells an asset at a specified price or better.
- The trade is executed only if the market reaches the specified price.
3. Stop-Loss Order
- Sells an asset when it falls to a certain price to limit potential losses.
- Also known as a "stop order" or "stop-market order."
4. Take-Profit Order
- Sells an asset when it rises to a certain price to lock in profits.
5. Stop-Limit Order
- A combination of a stop-loss order and a limit order.
- When the stop price is reached, the order becomes a limit order.
6. Trailing Stop Order
- Sets a stop-loss price that adjusts automatically as the asset's price moves in the trader's favor.
7. Fill or Kill (FOK) Order
- An order that must be executed immediately and in its entirety; otherwise, it is canceled.
8. All or None (AON) Order
- An order that must be executed in its entirety; otherwise, it is not executed at all.
9. Good Till Canceled (GTC) Order
- An order that remains active until it is executed or canceled.
10. Immediate or Cancel (IOC) Order
- An order that must be executed immediately; any portion that cannot be executed is canceled.
11. Market on Close (MOC) Order
- An order to buy or sell an asset at the closing price of the trading session.
12. Market on Open (MOO) Order
- An order to buy or sell an asset at the opening price of the trading session.
Understanding these order types can help traders and investors manage risk, automate trades, and achieve their financial goals.
