There a number of different order types that you can choose from on your online trading platform. Four of the most popular ones are explained below.
A market order is the default option you can select, it is the most basic order type. It is recommended to choose this when you want your order to be filled immediately. Your trade will be executed at the current best price.
With a limit order, you can specify a limit price at which you want to buy or sell a given asset. Your order will only be executed once the price has reached or exceeded your pre-set limit. E.g. if you set a limit buy order at 100, once the price decreases to a 100 or below, the system will buy for you.
- Limit order to Buy = at or below the specified price
- Limit order to Sell = at or above the specified price
Stop (loss) order
Stop orders work the opposite way as limit orders, and they are designed to help you minimise your losses. Unless otherwise specified, a stop order is a trigger for a market order. E.g. if you set a sell stop order at 100, once the price decreases to a 100 or below, the system will sell for you.
- Stop order to Buy = at or above the specified price
- Stop order to Sell = at or below the specified price
Stop limit order
A stop (loss) order as specified previously, with the added feature of triggering a limit order once the stop price is reached. E.g. if you set the sell stop at 100 and the limit order to sell at 90, then once the price decreases to a 100 or below, the system will sell for you, but it will stop selling once the price reaches 90.