What are the possible price types for an equity order?

The possible price types for an equity order are:

  • Market Order: A market order is an order to buy or sell an equity immediately at the best price currently available in the market.

  • Limit: A limit order is an order to buy or sell an equity at a specified price or better.

  • Stop: A stop order is an order to buy or sell an equity when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price and limiting the investor's loss or locking in his or her profit. Once the price surpasses the predefined entry/exit point, the stop order becomes a market order. This feature is only available in US markets.

  • Stop limit: A stop limit order is an order to buy or sell an equity that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached the stop limit has to be within 10% of stop price. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.

  • Trailing stop: A trailing stop order is an order to buy or sell an equity that is set at a fixed amount or percentage below the market price for a long position. The trailing stop price is adjusted as the price fluctuates. A trailing stop order can be placed as a trailing stop market order. When a trailing stop order is modified, the original Calculated Price is recalculated using the current market price.
Last updated July 2, 2020