Types of Orders 

An investor can have his purchase or sell orders executed either at the best price prevailing on the exchange or at a price determined by him. Accordingly, an investor may place two types of orders, viz. market order or limit order.

Market Orders

 In a market order, the investor instructed broker sell or buy a shares at the best persisting price in the market. In the case of a purchase order, the best price is the lowest obtainable price and vice verse. While placing an order, the investor can be fairly sure that the order will be executed, but he remain uncertain of the price until after the order is executed.

Limit Orders

 The investor in advance, specifies the limit price at which he wants the transaction to be carried out, while placing a limit order,  In the case of a limit order, the investor specifies the maximum price that he will pay, the order has to be executed only at the limit price or a lower price.

Stop Orders

A stop order may be used by an capitalist to limit a loss or protect a profit . For a stop order, the investor must specify stop price. If it is a sell order, the stop price must be below the market price persisting at the time when order is placed. If it is a purchase order, the stop price must be above the market price persisting at the time of placing the order. If subsequently, the market price reaches or exceeds the stop price, the stop order will be executed at the best available price. In that case a stop order can be viewed as a conditional market order, because it becomes a market order when the market price reaches or exceeds the stop price.

Stop Limit Orders

 The stop limit order is a particular type of order designed to overcome the uncertainty of the execution quote linked with a stop order. The stop limit order provides the investor the opportunity of specifying a limit price for the execution of stop orders, the maximum price for a stop buy order and the minimum price for a stop sell order. With a stop limit order, the capitalist specifies two prices, a limit price and a stop price. When the market price reaches or exceeds the stop price, the stop limit order becomes a limit order to be executed within the limit price. Hence, a stop limit order can be considered as a conditional limit order.

Day Orders

 A day order is an order that is valid only for the trading day on which the order is placed. If the order is not executed by the end of the day, it is canceled.  All orders are generally treated as day orders except when specified as other types of orders.

Week orders

 These are orders that are valid till the end of the week (during which the orders are placed). They expire at the closing of the trading session on Friday of the week, unless they are executed by then.

Month Orders

 These are orders that are valid till the end of the month during which the orders are placed. Month orders expire at the close of the trading session on the last working day of the month.

Open Orders

Open orders are orders that valid till they are executed by the brokers or canceled by the investor. They are also referred as good till canceled orders or GTC orders. However, brokers in general seek periodic confirmation of open orders from the capitalist.

Fill or Kill Orders

 These orders are also referred as Fill or Kill orders. These orders are intended to be executed immediately. If not executed immediately, they are considered as canceled. 

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