Placing a trade Flashcards
Market order
Buy or sell, executed immediately at the best available market price
Limit order
Buy or sell, the limit price is the max price if buying, the minimum price if selling
Order precedence
Market orders always take precedence over limit orders and are executed when entered in time priority. Limit orders stand in time priority but behind market orders
Stop order
Buy or sell, it becomes a working/live order in the marketplace after being triggered by the stock reaching the specified stop price. Then becomes a market order, executed immediate at best available market price.
Stop limit order
Buy or sell, it becomes a live working order after being triggered at or through the stop price, it also has a limit price, it becomes a limit order to buy or sell at the specified limit.
Day order
Time restriction: valid only until the close of the trading day it was entered. If partially filled, any unexecuted portion is canceled at the end of the trading day
Good ‘til canceled order
GTC: Time restriction: valid until executed or canceled. GTC automatically canceled if unexecuted on the last business day of April and the last business day of October, unless customer requests the order continue f for the next cycle
Market at open or Market on close order
Time restriction: designated at the opening of the day or the close of the day. Depending on the market (exchange or OTC) customer is not guaranteed the exact opening or closing price but instead a price at, or close to the first or last price of the day. Must be filled in their entirety.
Fill or kill order
FOK: Fill restriction: fill (execute in its entirety) the order immediately or kill (cancel) the order completely. No partial execution.
Immediate or cancel order
IOC: Fill restriction: Like FOK orders, but partial execution is acceptable. Remaining unexecuted portion is canceled.
All or none order
AON: Fill restriction: must be executed in their entirety or not at all. Can be day orders or GTC orders.
