Knowing the order types available on your trading platform is important.
You can not only benefit from each features, but organize your trading strategies for a better result.
Here are the 8 types of order types available on many online trading platforms.
- Market Order – A market order is an order to buy or sell at the best available price.
- Limit Entry Order – This is an order placed to buy below the market or sell above the market at a certain price.
- Stop Entry Order – This is placed to buy above the market or sell below the market at a certain price.
- Stop Loss Order – This is linked to a trade for the purpose of preventing additional losses. The stop loss order stays in effect until the position is closed or until the order is cancelled.
- Trailing Stop – This is a type of stop loss order attached to a trade that moves as price fluctuates. Your position will be closed when a market order to close your position at the best available price is sent.
- Good For the Day – A GFD order stays active in the market until the end of the trading day.
- Once Cancels the Other – An OCO order is a mixture of two entry and or stop loss orders.
- One Triggers the Other – An OTO is the opposite of an OCO as it only puts an order when the parent order is triggered.