BASICS OF TRADING A STOCK: Different Types Of Stock Orders

 BASICS OF TRADING A STOCK: Different Types Of Stock Orders

Stock Trading Involves The Process Of Putting The Orders For Buying Or Selling The Stocks.
Many Investors Are Not Aware Of The Fact That You Can Place Different Types Of Stock Orders.
Here, You Can Also Set Different Sorts Of Limit In Your Order. You Will  Learn About Various Types Of Stock Trading Orders-

Type Of Stock Orders-

1. Market Order
2. Limit Order
3. Stop Order
4. Buy Stop Order

Let’s Start With The Basics,

In Stock Market Placing A Trade Order Seems Insightful A “Buy” Button To Start The Trade And A “Sell” Button To Close The Trade. This Is The Difference Between The Expected Price And The Price At Which The Order Is Actually Filled. So, When You Are Trading Stocks That Are Highly Unpredictable Or When You Are Trading In A Fast Moving Market, Slippage Can Be The Difference Market Between The Winning And The Losing Positions.
It’ S Good To Understand Trade Order Beyond The Traditional Format Of “Buy” And “Sell” Is Very Important For The Investors.
With  The Explosion Of The Digital Platforms.  Most Of The Investors Are Opting To Buy And Sell Stocks In Online Platform Instead Of Paying On Stock Advisory , Who Charge More To Execute The Trades. Once You Understand The Concept Of Different Types Of Orders, You Can Only Execute By Buying Or Selling The Stocks Which Will Save Your Time As Well As Your Money.

Types Of Stock Trade Orders-

1.       Market  Order 

     Market Order Is One Of The Basic Type Of Trade. A Market Order Is An Trade Order To Purchase Or Sell A Security Immediately. Here The Market Order Is That An Individual Cannot Control The Amount Paid For The Stock Purchase / Buy Or Sale. The Price Is Set By The Market.
Market Orders Does Not Guarantee A Price, But They Do Guarantee The Order’s Immediate Execution.
If An Investors Who Wants To Buy Or Sell A Stock Without Delay Can Go With Market Order Type.

2.      Limit Order

A Limit Order Is An Trade Order To Buy Or Sell A Security At Exact Price Or Better.
Limit Order Is Also Referred To As A Pending Order, Here They Allow The Investors To Buy And Sell Securities At A Secured Price In The Future.
Here, The Buy Limit Order Can Only Be Executed At A Specific Limit Price Or Lower And A Sell Limit Order Sets The Maximum Or Minimum Price At Which The Investors Are Willing To Buy Or Sell.

3.     Stop Order

In Other Terms Stop Orders Are Known To As Stop-Loss Orders.
Here The Trade Order Is Designed To A Limit,  An Investors Order Is Protected On Loss On A Position.
In Stop Order Where To Buy Or Sell A Stock Once The Price Of The Stock Reaches A Specified Price Is Recognized As The Stop Price. So, When The Stop Price Is Reached A Stop Order Becomes A Market Order.

4.     Buy Stop Order

Here Buy Stop Order Is Entered At A Specific Stop Price Above The Current Market Price.
The Investors Usually Use A Buy Stop Order To Limit The Loss And Also It Can Be Used To Protect A Profit On The Stock Which They Have Sold Short.
Here, Sell Stop Order Enters At A Stop Price Below The Price Of The Current Market.
I Hope This Blog Helped You To Learn The Basic Types Of Stock Trade.