Order Types

Beginner

In this Master Academy educational article and video, we are concentrating on different types of orders that can be placed with brokers.

We are going to look at FOUR differing types of Order.

  1. Limit Order
  2. Market Order
  3. Stop Order
    • Stop Exit
    • Stop Entry
  4. OCO Order

1. Limit Order

An order to BUY below the current market price.

Order Types - BUY Screenshot

An order to SELL above the current market price.

Order Types - Sell Screenshot

2. Market Order

An order to execute at current best price.
For a BUY order, this will mean buying at the offer price.

Order Types - Buy2 Screenshot

An order to execute at current best price.
For a SELL order, this will mean selling at the bid price.

Order Types - Sell2 Screenshot

3. Stop Order

An order usually used to exit an open position (Stop Exit)
BUT, can also be to enter a new position (Stop Entry)

Sell Stop Order

If LONG, the stop would be a SELL order, below market price
BUT can also be used to enter a SHORT position on a break lower

Order Types - Sell Stop Screenshot

Buy Stop Order

If SHORT, the stop would be a BUY order, above market price
BUT can also be used to enter a LONG position on a break higher

Order Types - buystop screenshot

4. OCO Order

OCO=One Cancels Other
TWO linked orders
When either order is executed, the other is cancelled

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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