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are many different transactions that you can request when
trading stock online or over the phone. A list of
some common order types are:
Market order: An order that requires immediate
execution at the best price available. This is usually the
cheapest trade because the broker has little work to do.
Stop
Order: A market order that trades after a specific
price has been reached. Also called a stop-limit or stop-loss
order. This is a good way to protect your downside, although
the exact price cannot be guaranteed.
Limit
order: An order to transact at a specified price.
This guarantees the price at which you will buy or sell the
stock. Limit orders can be more expensive than market orders.
All
or None: A stipulation on a limit order to either
buy or sell a security only if the entire order can be filled.
Day
Order: An order that expires at the end of the business
day if it has not been filled.
Fill-or-Kill:
An order for immediate execution. If the order cannot be filled
immediately the order is canceled.
Good
Till Canceled: An order to either buy or sell stock;
which remains in effect until the customer cancels the order
or it is executed by the broker.
Short Sale:
An amount of stock is borrowed and sold with
the hopes of returning the stock at a lower price and cashing
in on the difference.
Buy
to Cover: An order placed to close a short position.
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