Trade Orders

There are different types of orders which one can use to trade in Stocks.

At the foundation of successful stocks is making use of the correct order for its correct purpose. Most important things to remember about is this: Always understand the orders you place. Never place a order which as a trader you are not entirely knowledgeable about. Given below are the some basic definitions of the commonly used types of trade orders:

Types of Market Orders & Pending Orders

Market Trade Order

This is the most basic type of order, market order is used to buy or sell at the current ask or bid quote price. This refers to the quoted price which pops up on your platform.

This type of order is used for buying or selling according to the current exchange rate quotation in Stocks, the execution is instant. The minute you want to enter a position you can buy and sell the at a click of a button using a market order.

Entry Orders

These are orders used to open a new trade after the market reaches a price specified by the trader.

Entry orders are used to buy or sell a instrument when it attains a certain price target.

When a specific price level is reached or broken then a entry order is executed.

These Entry Orders are used to enter a trade at a specified price level. It's almost impossible to monitor the market every second and this is why an entry order can be handy. If you feel the market may take a certain action, such as break through a specific price level that it has been touching but it has not been able to break, you'd want to use an Entry Limit Order. Once the market crosses your specified level, your entry limit trade order is executed.

There are two different types of entry orders - limit order & stop entry order.

These entry orders are also referred to as pending trade orders.

Entry Limit Order

An order to buy or sell at a certain limit.

An entry limit order can be used to buy below the current price or sell above the current price.

When buying, entry limit is executed when price falls to your limit zone.

When selling, entry limit is executed when the price rises to your limit level.

These Entry Limit Orders are placed by traders when they expect the market to bounce back after reaching the price level at which the entry limit was placed.