What is the difference between Market and Limit Orders, Trailing Stop Orders, OCO and Parent and Contingent Orders?
Ok, the differences at a glance… • Market order – An order to place a spread bet, to be filled immediately at the next quoted price. This is the most common of all order types. Be careful, as you may not receive the most advantageous price in a fast-moving market. • Limit order – Specifies that a trade must be executed at a specific price. Limit orders are placed to enter the market or to protect profits. Because limit orders are not executed unless they reach the specified price, they may or may not be executed. • Stop order – An order used to close out an open position, reverse a position, or open a new position at a specified price. They are typically placed to limit losses, closing a position if a price drops or rises beyond the specified point. However, you can also use a stop order to open a long position if the market rises and breaks through a previous area of resistance, or sell short if it falls past support. • Trailing stop order – A type of stop loss order that is set to
Ok, the differences at a glance… • Market order – An order to place a spread bet, to be filled immediately at the next quoted price. This is the most common of all order types. Be careful, as you may not receive the most advantageous price in a fast-moving market. • Limit order – Specifies that a trade must be executed at a specific price. Limit orders are placed to enter the market or to protect profits. Because limit orders are not executed unless they reach the specified price, they may or may not be executed. • Stop order – An order used to close out an open position, reverse a position, or open a new position at a specified price. They are typically placed to limit losses, closing a position if a price drops or rises beyond the specified point. However, you can also use a stop order to open a long position if the market rises and breaks through a previous area of resistance, or sell short if it falls past support. • Trailing stop order – A type of stop loss order that is set to
