50 likes | 191 Views
Types of Stock Orders. 3 Main Types. Market Order Buy Limit Order Sell Limit Order. Market Order. A request to buy or sell a stock at the current market value. Trade is executed immediately for a stated number of shares at the next available price without any other restrictions
E N D
3 Main Types • Market Order • Buy Limit Order • Sell Limit Order
Market Order • A request to buy or sell a stock at the current market value. • Trade is executed immediately for a stated number of shares at the next available price without any other restrictions • Price is less important • Quick Entry/Exit
Buy Limit Order • An order that indicates the highest price you are willing to pay for a stock • You set the price you want to buy the stock for then when it reaches that price you purchase it • Example:WMT is currently at $44/share, you put in a limit order to buy at $40. You will buy the stock as soon as it gets down to $40 a share • Should be done almost every time you purchase a stock
Sell Limit Order • An order that indicates the price you are willing to sell a stock at • You set the price you want to sell the stock at, when it reaches that price you sell it • You own GOOG, it’s currently at $450/share, you put in a limit order to sell at $475/share. You would sell the stock as soon as it goes up to $475 a share. • You own GOOG, it’s currently at $450/share, you put in a limit order to sell at $430/share. You would sell the stock as soon as it goes down to $430 a share.