Stock Market Order Types

Stock market order types are the instructions provided by investors to a stock exchange for buying and selling securities at predetermined prices or conditions. With different types of stock market orders, traders can control the execution price, timings, and risk involved while placing orders in the market. By understanding how various order type in share market work, like market orders, limit orders, and stop-loss orders, investors can easily execute the transactions. They can even align their trades with their investment strategy and market conditions. This article explains the types of orders in trading.  

What are the Different Stock Market Order Types? 

The following are  different stock market order types.  

1. Market Order 

A market order is executed immediately at a suitable available price in the market. It ensures quick execution but does not guarantee the exact price, especially in volatile markets. 

2. Limit Order 

A limit order is placed at a specific price or better. It gives price control, but execution happens only if the market reaches the chosen price. 

3. Stop-Loss Order 

A stop-loss order is used to limit losses by automatically placing a buy or sell order when a trigger price is reached. Once triggered, it usually converts into a market order. 

4. Stop-Loss Limit Order 

This order combines a stop-loss and a limit order. After the trigger price is hit, the order is executed only within the specified limit price range. 

5. After Market Order (AMO) 

An AMO is placed after regular market hours. It gets executed when the market opens, subject to price availability. 

6. Bracket Order 

A bracket order includes an entry order along with a predefined target and stop-loss. It helps traders manage risk and lock gains automatically. 

7. Cover Order 

A cover order is a market or limit order paired with a compulsory stop-loss. It reduces downside risk and allows higher leverage in intraday trading. 

8. Immediate or Cancel (IOC) Order 

An IOC order is executed immediately, either fully or partially. Any unexecuted portion is automatically cancelled. 

9. Good Till Triggered (GTT) Order 

A GTT order stays active until a specified trigger price is reached. It is useful for long-term investors who want automated execution without daily order placement. 

Difference Between Market Order and Limit Order 

Here are the major differences between the market order and limit order listed in the below table. 

Disclaimer: All investments are subject to market risks, economic conditions, regulatory changes, and other external factors. Returns are not guaranteed and may vary based on market performance and investment tenure. Investors should assess their risk tolerance and financial objectives, conduct their own research, and consult a qualified financial advisor before making any investment decisions. 

Conclusion 

The types of stock market orders determine the manner in which both buy and sell orders are given so that the investor can be able to deal with the price, timing and risk in a better way. Starting with a straightforward order like a market and limit order, up to high-level orders like stop-loss, bracket, and cover orders, there is a purpose behind each type of order. Understanding the difference between market orders and limit orders further enables traders to choose between speed of execution and price control. By using the appropriate order types through a reliable stock market trading app, investors can execute trades efficiently while aligning decisions with their overall investment strategy and market conditions.