Saturday, 29 August 2015

Types of stock orders

Stock orders can be of below types.

  1. Market order
  2. Limit order

Market order is the one which is executed at market price of the stock.

Limit order is the order which is executed at specific price of the stock.

Example - You put a order for 100 shares. The current market price is say 80. Then you will have to shell out 8000 bucks to buy these shares. This is called as market order.

In limit order, we specify the price at which we want to buy or sell the shares. In above example, If I had given the limit price as 79, order will be executed at 79. You will have to shell out (79*100) bucks.

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