Due to the rapid growth and convenience of the online digital space, investors are increasingly favoring the idea of buying and selling stocks themselves rather than having to pay advisors. However, before you do so, you must know the different types of orders and when they are appropriate.

Market vs. Limit 

Market order: this is an order to buy or sell immediately at the best available price. These do not have a guaranteed price, but rather guarantee the order’s immediate execution. This decision is popular among individual investors who want to buy or sell a stock without delay.

Limit order: this is an order that sets the maximum or minimum price at which you are willing to buy or sell. This means that you would not pay a penny over a certain dollar amount for the particular stock that you set.

Other Orders 

Stop order: this is an order referred to as a stop loss, stopped market, on-stop buy, or on-stop sell. This is different than all the others due to the fact that it remains dormant until a certain price is passed, at which time it is activated as a market order.

All or none: this is an order for those who buy penny stocks. It ensures that you get either the entire quantity of stock you requested or none at all.

Good ’til canceled: this is an order that places a time restriction that you can place on different orders. The order will remain active until you decide to cancel it. Usually, there is a maximum time limit for active status at 90 days.

Day: this order occurs when an investor does not set a specific time for a good ’til canceled order. This means that after the end of the trading day, the order will expire.

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