Order Types and Execution

These pages explain the instruction types traders send to brokers, venues, and execution systems.

The emphasis is on how order conditions affect timing, price control, and execution behavior.

In this section

• Core Order Types And Pricing Instructions
  Market-structure terms for market, limit, discretionary, conditional, and pricing-instruction orders.
  • Conditional and Discretionary Orders
    Order-type terms for conditional orders and discretionary order instructions.
    • Conditional Order
      A comprehensive guide to understanding Conditional Orders, a type of financial market order that activates only when certain conditions are met.
    • Discretionary Order
      An in-depth exploration of discretionary orders, including their meaning, practical examples, and role in investment management.
  • Core Price-Control Orders
    Order-type terms for market orders, limit orders, or-better instructions, and general order classification.
    • Limit Order
      An in-depth guide on limit orders in trading, explaining their definition, functionality, and practical examples for effective trading strategies.
    • Market Order
      A comprehensive guide to understanding market orders, including definitions, examples, and a comparison with limit orders.
    • Or Better (OB): Securities Trading Indication
      A detailed explanation of 'Or Better (OB)' as an instruction used in limit orders to indicate that a broker should execute the order at a price better than the specified limit, if possible.
    • Order Types: Specific Instructions for Executing Trades
      Order types are various predefined instructions provided by traders to brokers to execute financial transactions, including but not limited to Limit Orders, Market Orders, and more.
    • Order: Commercial, Investment, Legal, and Trade Contexts
      A comprehensive overview of the term 'Order' in various contexts including commercial law, investments, legal frameworks, and trade.
• Execution Duration And Trade Size
  Market-structure terms for execution, day orders, and lot-size conventions.
  • Day Order
    An in-depth look into Day Orders, their definition, duration, various types, and practical examples in trading.
  • Execution
    Understanding execution in the context of financial orders and the implementation of plans or actions across various domains.
  • Lot Size: The Quantity of Securities in a Contract
    Understanding Lot Size: Historical Context, Types, Importance, Examples, and Related Terms in Trading and Finance.
• Stops, Profit Targets, And Close Orders
  Market-structure terms for stop orders, stop limits, stop losses, take-profit instructions, and market-on-close orders.
  • Market-on-Close (MOC) Order
    A comprehensive guide covering the definition, risks, benefits, and practical examples of Market-on-Close (MOC) orders in stock trading.
  • Stop Loss Order: Limiting Investment Losses
    An order given by an investor to a broker to sell a financial instrument, commodity, etc., when its price falls to a specified level in order to limit loss.
  • Stop Order
    An in-depth look at stop orders, including their definition, various types, and guidelines on when to place these orders to maximize trading effectiveness.
  • Stop-Limit Order
    A comprehensive guide to understanding stop-limit orders, their functionality, benefits, and implications for investor risk mitigation.
  • Take-Profit Order
    A take-profit order is a pre-set directive to sell an asset when it reaches a specified price to secure profits.