#1
What is a Market Order?
An order to buy or sell a security at the current market price
ExplanationImmediate execution at prevailing market price.
#2
What is a Limit Order?
An order to buy or sell a security at a specific price or better
ExplanationExecuted at a specified price or better; not guaranteed immediate execution.
#3
What is a Discretionary Order?
An order in which the broker has the discretion to execute at the best available price
ExplanationBroker has discretion to execute at the optimal market price.
#4
What is a Stop Order?
An order that becomes a market order when a certain price level is reached
ExplanationBecomes a market order when specified price is reached, triggering execution.
#5
What is a Stop-Limit Order?
An order combining features of a stop order and a limit order
ExplanationBecomes a limit order after the specified stop price is reached, limiting the execution price.
#6
What is a Good 'Til Canceled (GTC) Order?
An order that remains active until it's either filled or canceled
ExplanationStays active until executed, canceled, or a predefined period lapses.
#7
What is a Market-on-Close (MOC) Order?
An order executed at the end of the trading day at the current market price
ExplanationExecuted at the closing market price of the trading day.
#8
What is a Immediate-or-Cancel (IOC) Order?
An order that must be executed immediately or canceled
ExplanationRequires immediate execution; canceled if not executed immediately.
#9
What is a Trailing Stop Order?
An order that adjusts based on the movement of the security's price
ExplanationDynamic stop price that follows the market price movement, limiting losses.
#10
What is a Fill-or-Kill (FOK) Order?
An order that must be executed immediately in full or canceled
ExplanationRequires immediate full execution; canceled if not fully executed.
#11
What is a Market-on-Open (MOO) Order?
An order executed at the beginning of the trading day at the current market price
ExplanationExecuted at the opening market price of the trading day.
#12
What is a Hidden Order?
An order that is not visible in the order book
ExplanationNot displayed in the order book; keeps trading intentions confidential.
#13
What is a Post-Only Order?
An order that is only added to the order book if it doesn't match with existing orders
ExplanationAdded to the order book only if it doesn't immediately match existing orders.