Stock Trading Order Types

BUY ORDERS

**Market order** – Market orders execute at the following market price. Market buy orders are adjusted to limit orders collared up to 5%. Limit orders higher than the current offering will be executed at the next best available price. Keep in mind that the price you see when you enter the order may differ from the following price. Please note that market sell orders are not collared, and market buy order collars may vary depending on prices of instruments, market conditions, and other factors.

**Limit order** – Limit orders specify the maximum amount you are willing to pay for a stock.

Ex. ABC stock is trading at $10. A limit order can be placed at $9 which will execute when ABC stock is offered at $9 or lower.

**Stop loss** – Stop loss orders trigger a market order to buy when the stop price is reached. Stop loss orders are sent as stop limit orders with the limit price collared up to 5% above the stop price.

Ex. ABC stock is trading at $10. A stop order can be placed at $11 to trigger a market buy order when a trade executes at $11 or higher.

**Stop limit order** – Stop limit orders will trigger a specified limit order when the stop price is met. This may be used to limit the price your trade will execute for after the stop is triggered, but there is risk that it will not execute if the stock moves past it.

Ex. ABC stock is trading at $10. A stop limit order is entered at an $11 stop and a $11.10 limit. Once there is an execution at $11, a limit order will be triggered to buy ABC stock when it is offered at $11.10 or lower.

SELL ORDERS

**Market order** – The order will sell at the next best available price. Keep in mind that the price you see when you place the order may differ from the following price.

**Limit order** – Limit orders specify the minimum amount you are willing to receive when selling a stock.

Ex. XYZ stock is trading at $25. A limit order can be placed at $30 which will execute when ABC stock is selling at $30 or higher.

**Stop Loss** – Stop loss orders trigger a market order to sell when the stop price is met.

Ex. XYZ stock is trading at $25. A stop order can be placed at $20 to trigger a market sell order when a trade executes at $20 or lower.

**Stop limit order** – Stop limit orders will trigger a specified limit order when the stop price is reached. This may be used to limit the price your trade will execute for after the stop is triggered, but there is risk that it will not execute if the stock moves past it.

Ex. XYZ stock is trading at $25. A stop limit order is entered at a $20 stop and $19.90 limit. Once the last trade price of $20 is reached, a limit order will be triggered to sell ABC stock when it is selling at $19.90 or higher.

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