A “Day Order” is an order to buy or sell securities that expires at the end of the trading day if it is not executed. A Day Order may be entered for a specific share price, or as a “market order” which will be executed at the best available price. What is a trading mechanism? … Read more
A closing offset (CO) order is an order type that is used to close out an open position. This can be done by offsetting the position with an opposite trade, or by selling the position outright. A CO order can also be used to help manage risk by setting a limit on how much the … Read more
An order to buy or sell a security at a price that is better than the current market price. An order to buy or sell a security at a price that is better than the current market price is called an “above the market” order. This type of order is usually used when the investor … Read more
A market-on-close (MOC) order is an order to buy or sell a security at the end of the trading day, when the market price is determined. MOC orders are typically used by investors who want to ensure that their buy or sell order is executed at the end of the day, regardless of the day’s … Read more
An At-The-Opening order is an order that is placed before the market opens. This type of order allows traders to get their orders in early and avoid any potential price spikes that can occur when the market opens. At-The-Opening orders can be placed for both buy and sell orders. For buy orders, the trader is … Read more
A discretionary order is an order that is not automatically generated by a computer system, but is instead manually entered by a human trader. Discretionary orders can be used to trade any security, but are most commonly used in the foreign exchange market. Discretionary orders are generally used by experienced traders who have a good … Read more
A contingent order is an order to buy or sell a security that is contingent upon the security’s price reaching a specified price. The order is typically used by investors who believe the security’s price will reach the specified price, but are unwilling to pay the current market price. What are trading orders? A trading … Read more
Sell to Open is an order type that is used to initiate a short position in an underlying security. To enter a Sell to Open order, the trader must first locate a security that they believe is overvalued and are therefore looking to sell. Once they have found a suitable security, they will then submit … Read more
A market-on-open order is an order to buy or sell a security at the opening price of the trading day. This type of order is typically used by investors who have a strong opinion about where the market is headed and want to get their trade in at the opening bell. While a market-on-open order … Read more
A buy stop order is an order to buy a security at a price above the current market price, typically used to limit losses or lock in profits. A buy stop order is placed above the current market price and is only triggered when the security’s price hits or exceeds the stop price. At that … Read more
