1. Market Order
Buy or sell order at a current market price. Best execution price guaranteed by execution venue. The Requested Order price is not guaranteed.
2. Buy Limit Order
Pending order to buy below the current market price. Trigger condition: the current Ask price is less or equal to declared order price. The Requested Order price is guaranteed. The Execution price is better or equal to the Declared Price.
Case of using a Buy Limit Order
Support levels: When you think a financial instrument will hit a support level and rebound, you can set a Buy Limit Order at that level to purchase the financial instrument if it reaches your desired price.
Example
Suppose a stock is currently trading at $170.07, but you only want to buy it if it drops to $160. You can set a Buy Limit Order at $160. If the price falls to $160 or below, your order will be executed at your specified price or better.
3. Sell Limit Order
Pending order to sell above the current market price. Trigger condition: the current Bid price is higher or equal to declared order price. The Requested Order price is guaranteed. The Execution price is better or equal to the Declared Price.
Case of using a Sell Limit Order
Resistance levels: When you believe a stock will hit a resistance level and then decline, you can set a Sell Limit Order at that level to sell the stock if it reaches your desired price.
Example
Suppose you see a "double top" (an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times) with a maximum price of $50 for the stock. You set a Sell Limit Order at $50 in anticipation that the price will drop to $40, allowing you to buy it back and take a profit.
"Double top" pattern:
4. Buy Stop Order
Pending order to buy above the current market price. Trigger condition for FX/ Indices: current ask price is greater or equal to declared order price. Trigger condition for Stocks: last price is greater or equal to declared order price. Requested Order price is not guaranteed.
Cases of using a Buy Stop Order
Breakout trading: If you believe a stock will continue to rise once it reaches a certain price, you can use a Buy Stop Order to buy as it breaks through that level.
Entering a position in a bull market: When you want to buy into a stock that is showing strong upward momentum and you want to confirm it’s continuing to rise before you buy.
Example
Suppose a stock is currently trading at $144.90, but you want to buy it if the price rises to $170, indicating a potential breakout. You can set a Buy Stop Order at $170. If the stock price reaches $170 or higher, your order will be executed at the next available price, which could be higher than $170 due to market fluctuations.
5. Sell Stop Order
Pending order to sell below the current market price. Trigger condition for FX/ Indices: current bid is less or equal to declared order price. Trigger condition for Stocks: last price is less or equal to declared order price. Requested Order price is not guaranteed.
Case of using a Sell Stop Order
Entering a short position: When you believe a stock will continue to fall once it reaches a certain price, you can use a Sell Stop Order to sell as it breaks through that level.
Example
Suppose a stock is currently trading at $68.47, but you want to sell it if the price drops to $65. You can set a Sell Stop Order at $65. If the stock price falls to $65 or lower, your order will be executed at the next available price, which could be lower than $65 due to market fluctuations.
