Buy - Purchase
a stock either on a cash or margin basis.
- Dispose of a
stock you are currently holding in your portfolio.
Sell Short - Enter
a short position, whereby you sell a stock you do not hold
by borrowing it from your broker. Note that short sales are
subject to special exchange rules, and shares may or may not
be available for shorting.
Buy to Cover - Purchase
a stock to cover a short position and pay back what you borrowed
from your broker.
Market - Placing
a market order instructs your broker to buy or sell at the
current market price now. This type of order should be used
when you want to be certain of receiving an execution. Note
that prices can change quickly so the execution price will
often be slightly different than the price quoted at the
time of placing the order.
Limit - Placing
a limit order instructs your broker to buy at or below,
or sell at or above, a limit price you specify.
Stop - A
stop order is initially a limit order to buy or sell when
a specified price (the "stop" price) has been reached. Once
the stock trades at or beyond the specified price the stop
order becomes a market order.
order on a sale is placed below the current market (usually
to limit losses or protect unrealized gains). A stop order
on a purchase is placed above the current market (usually
to protect short positions).
All or None - Used
on larger orders to avoid partial executions over several
days and being charged for more than one commission. This
type of order instructs your broker to execute your entire
order at the price you specified. Note regular limit orders
take priority over this order so a All-or-None order may
not be executed.
Fill or Kill - Used
when you want to execute your entire order immediately at
the price you specified or cancel the order immediately.
Similar to All-or-None orders, this avoids receiving partial
execution over several days. Unlike All-or-None orders,
Fill-or-Kill orders will ensure that if the entire order
can not be executed immediately at the price you have specified,
the order will be canceled.