| Overview | Investing Options | Research Basics | Type of Orders |
Once an investor has researched a stock and decided to purchase it, they must determine the type of order to place.
An order is an instruction to a stockbroker or dealer to buy, sell, deliver, or receive securities or commodities. The order commits the issuer of the order to the terms specified in the order. |
| Common Order Types |
Round Lot. An order to buy or sell in multiples of 100 shares.
Odd Lot. An order to buy or sell that involves less than 100 shares.
Market Order. An order to buy or sell at the best price currently available.
Limit Order. An order to buy or sell when and if a security reaches a specific price.
Good Til Cancelled (GTC) Order. An order to buy or sell at a specific price until the investor cancels the order.
Scale Order. An order to buy or sell a security that specifies the total amount to be bought or sold at specified price variations.
Stop Order. An order to buy at a price above or sell at a price below the current market. Stop buy orders are generally used to limit or protect unrealized profits on a short sale. Stop sell orders are generally used to protect unrealized profits or limit loss on a holding. A stop order becomes a market order when the stock sells at or beyond the specified price and, thus, may not necessarily be executed at that price.
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