What does the price type mean when buying stocks?
Price type, or order type, determines the price and execution of your order to buy or sell a security. Market and limit orders are the most common order types.Market OrderA market order is an order to buy or sell a security at the current market price.Limit OrderA limited order is an order to buy or sell a security at a specified price, or better. A limit order to sell will only execute when the price is at the limit price or higher. Conversely, a limit order to buy will only execute when the price is at the limit price or lower.Other Order TypesThese include, but are not limited to, stop order, stop-limit order, day order, good-til-canceled (GTC), all-or-none (AON) and fill-or-kill (FOK).Selecting Order TypeThe order type is key for certain trading strategies. It is important to understand the underlying mechanisms of each order type to ensure that you select the correct order type for your intended transaction.WarningYour broker may offer additional price types than those listed belo
