Why Use Different Types of Orders?

• The part-time investor doesn't often have time to watch stocks all day. Different order types allow the trader to set specific buy-and-sell levels that execute automatically.
  
  

What Is a Market Order?

• When you place an order to buy or sell a stock, a market order will execute at the going price at that second. Market orders aren't generally recommended for use.
  
  

Why Not Use a Market Order?

• What if your stock's price changes dramatically between the time that you enter the order and the time it executes? You should always name your price rather than allow the market to decide.
  
  

What Is a Limit Order?

• With a limit order, you name your price. When you place a limit order to sell, you specify the minimum amount you will accept. If you are purchasing, you specify the maximum amount you will pay.
  
  

Are There Other Types of Orders?

• There are many more types of orders. Some are simple but others are complicated. Look at the resources section to read about the many types.