Below you will find a list of all the types of orders that you can use trading. Depending on the broker you work with you will be able to access all or only the most common ones, such as market orders, limits and stop orders.
They are used to buy or sell an asset at the fastest possible speed. They will run at the first available price and if our position is larger than the offer will be executed at the next available price.
This is the order in which a specific price is set for the transaction to be performed. This way it will always run at a price equal to or better than the price you have set whenever there is supply and demand.
A limited order can only be executed at a lower price (if it is a purchase order) or higher (if it is a sell order) than that fixed if executed at launch. If the order is not executed at that time it can only be executed at that price except in the opening, closing and volatility auctions in which a case could be more favorable to our interests.
Limited stop orders
A stop limit order sends an order with a buy or sell limit when the stop trigger price specified by the user is reached or exceeded. The order has two basic components: the stop price and the limit price. When a trade reaches or exceeds the stop price, the order becomes executable and enters the market as a limited order, which is an order to buy or sell at a specified or better price.
A stop limit order eliminates the price risk associated with a stop order in which the execution price cannot be guaranteed, but exposes the investor to the risk that the order will never be executed, even if the stop price is reached.
Orders for the best
An order for the best is one that allows you to obtain the best price of the offer or demand at the time of entering the order. No specific price is mentioned at the time of purchase. If the order is entered in the opening auction it will be converted into a limited order, if entered during the session it will be limited to the best available price of the executed part.
Stop Loss and Stop Profit Orders
Stop loss and stop profit orders are orders that are used to protect us from market movements and preserve our capital (stop loss) and to collect profits if we reach our stop profit.
They can be entered in two ways, one would be to enter it after entering our main order (therefore two orders), or, at the same time we make the purchase or sale, it will depend on our broker and our platform.
Dynamic stop order
It is that stop order that follows the evolution of the price. If the price goes in our favor the stop loss moves automatically with price movements always at the distance that we decide.
Conditional order (Buy Stop)
It is that order, in this case of purchase, in which you want to buy above the current price that we have an asset. It is called conditioned because it has to meet a condition for it to be executed, in this case the condition is that the price is higher than the current price.
Conditional order (Sell Stop)
It is that order, in this case of sale, in which you want to sell below the current price that we have an asset. It is called conditioned because it has to meet a condition for it to be executed, in this case the condition is that the price is lower than the current price.
DURATION OF ORDERS
This is the order that expires at the end of the current session. If it does not run it is automatically canceled. It is usually the default order on most trading platforms.
GTC (Good Til Canceled)
A GTC order is active in the market until it is executed or until the trader cancels it. As a general rule, the broker automatically cancels them if they have not been executed within 30 and 90 days. Logically, we can decide how many days between this interval.
ATC (At the Close)
An ATC order is the order that is executed at the closest possible price to the market close. These are orders that are introduced and we have to “trust” the broker to execute it at the price closest to the closing price. Little-used order and not all brokers have them.
GTD (Good Til Date)
A GTD order is the one that remains active until a specific date. The order will remain active until execution or until cancellation. Unusual order.
ATC (At the opening)
An ATC command is the order that is executed at the opening of the session, just the opposite of the ATC orders. If for some reason it cannot be executed at the opening it is automatically canceled. Not all brokers have these types of orders.