Types of Orders in Internet Trading
In internet trading all orders fall within two major types: market orders and pending orders. With FIBO Group, all orders are GTC (Good Till Canceled). A GTC Order is active until an investor decides to cancel it. Dealers will never void an order entered by a customer unless, after an order is activated, there are insufficient funds to execute it. This is why customers should not forget about the orders they have on their account.
Market Order
This is the most commonly used type of order. It instructs the broker to buy or sell this or that instrument at a price immediately available in the market.
Pending Order
- Limit Order: This type of order means that a customer determines a price limit at which they would like to buy or sell a contract. A limit sell order will be executed only when the market is at the level of the price limit or higher (which is better), and a limit buy order will be executed when the market is at the level of the price limit or lower (which is better). Take Profit is a limit order.
- Stop Order: This is an order designated to open a position at a price higher than the price currently available in the market in the event of a purchase, and lower in the event of a sale. This type of order is also used to limit loss («Stop Loss»).
- Trailing Stop: The execution price of this order changes depending on market conditions. It is generally used to ‘drag’ the stop price to the market in the event of a profitable position, and essentially «automates» a Stop Loss order.
