Market Order

A market order is an order to buy or sell a security at the current market price.

Limit Order

A 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 Types

These 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 Type

The 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.

Warning

Your broker may offer additional price types than those listed below, and may have additional restrictions. Review your broker's trading rules and guidelines before placing an order with any price type.

Source:

Securities and Exchange Commission: Brokerage Orders

Resource:

Securities Industry Association: Common and Preferred Stock

Securities and Exchange Commission: Trade Execution-What Every Investor Should Know

Securities and Exchange Commission: Getting Information About Companies