Market Order (MKT):

A market order is an order to buy or sell a specified number of securities at

prevailing market prices.

3 4

100
2 at a price of Upon placing a
5
$100 Market Order
1,000

of a certain to Sell 1,000 shares

company

100
1
Sell Order
5,000 shares
Sell
Order 6
The order will be executed
If there is a bid for at a price of $ 100
5,000 shares
per share

100
5,000 shares Sell
Order
1 If there is an offer of The order will be executed
at a price of $100
6
5,000 shares
Buy Order per share

1,000
of a certain to buy 1,000

2
company
100 shares
5
at a price of Upon placing
$100 a Market Order

3 4
Limit Order (LMT):

A Limit Order is an order to buy or sell a specified number of securities at a

price determined by the trader.

3 4
100
2 is $100 at
Upon placing
5
a quantity
of 5,000 shares a Limit Order
1,000

on the shares of To sell 1,000 shares at

a company a price of $100

1
Sell Order
6
The order will be executed
as there is another bid which
If the best bid price matches the sell order’s
price and quantity

1 If the best
The order will be executed
as there is another offer 6
Buy Order
which matches the buy
offer price order’s price and
quantity

1,000

on the shares To buy 1,000 shares

of a company
100 at a price of

2 $100
5
is $100 at a quantity Upon placing
of 5,000 shares a Limit Order

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 Stop Loss/Profit Order (STP):

A Stop Order is an order to buy or sell a specified number of securities if the

price of the security reaches a trigger price determined by the trader; if the
trigger price is reached, the Stop Order becomes a Market Order.

3 4
98
2 Upon placing a Stop
Loss order with a
the order will not be
executed until the
5
stop price of $98 price of the share
falls to $98
98

on the shares of If the price of the

a company share reaches $98

1
Sell Order
6
If the best bid price the order will become
is $100 a market order

1 If the best offer price the order will become 6

Buy Order
is $100 a market order

102

If the price of the share

on the shares of reaches $102
a company 102
2 5
Upon placing a Stop the order will not be
Profit order with a stop executed until the price of
price of $102 the share rises to $102

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1- Sell Stop Order: The stop price must be less than the market price of the security, or the order will be executed immediately.
2- Buy Stop Order: The stop price must be higher than the market price of the security, or the order will be executed immediately.
 Limit Stop Loss/Profit Order (STP LMT):

A Limit Stop Order is an order to buy or sell a specified number of securities if

the price of the security reaches a trigger price determined by the trader at a
limit price determined by the trader; if the trigger price is reached, the Stop
Limit order becomes a Limit Order at the price determined by the trader.
3 4

97
2 Upon placing a Stop
Limit order with and a limit price
5
a stop price of $98 of $97
98

the order will not be

on the shares of executed until the price of
a company the share falls to $98

1
Sell Order
6
at which point the order
If the best bid price becomes a Limit Order at
is $100 a price of $97

1 If the best offer

at which point the order
becomes a Limit Order 6
price is $100
Buy Order at a price of $103

102

the order will not be

on the shares of executed until the price
of the share

2
a company
103 rises to $102
5
Upon placing a Stop
Limit order with a stop and a limit price
price of $102 of $103

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1- Sell Limit Stop Order: The stop price must be less than the market price of the security, and the limit price must be less than or equal to the defined
stop price, or the order will be executed immediately.
2- Buy Limit Stop Order: The stop price must be higher than the market price of the security, and the limit price must be higher than or equal to the
defined stop price, or the order will be executed immediately.
Market on Close Order (MOC):

A Market on Close order is an order to buy or sell a specified number of

securities which is executed at prevailing market prices at the close of the
market. The order must be submitted at least 15 minutes before market
close.
3 4

100
2 at $100 on market when an MOC
5
close order is placed
1,000

of a company for 1,000 shares

1
Sell Order 100
5,000 shares Sell
Order
6
If there is a bid to buy the order will be
5,000 shares executed at $100

100
5,000shares Sell
Order
1 If there is an offer to the order will be 6
sell 5,000 shares
Buy Order executed at $100

1,000

of a company for 1,000 shares

2 100 5
at $100 on market close when an MOC
order is placed

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Limit on Close Order (LOC):

The Limit on Close Order is an order to buy or sell a specified number of

securities which is submitted at a limit price defined by the trader and
executed at the close of the market. The order must be submitted at least 15
minutes before market close.
3 4

100
2 at $100 on market when an LOC
5
close order is placed
1,000

of a company At $100 for

1,000 shares

1
Sell Order
5,000shares 6
the order will be executed at
If there is a bid to buy 100 as the quantity is available
5,000 shares at the price determined by the
trader at market close

5,000shares

1 6
the order will be executed at
If there is an offer to 100 as the quantity is available
sell 5,000 shares at the price determined by the

Buy Order trader at market close

1,000

of a company At $100 for

2 100 1,000 shares

5
at $100 on market close when an LOC order
is placed

3 4
 Trail Order:

A sell trailing stop order sets the stop price at a fixed amount below the market
price with an attached "trailing" amount. As the market price rises, the stop price
rises by the trail amount, but if the stock price falls, the stop loss price doesn't
change, and a market order is submitted when the stop price is hit. This
technique is designed to allow an investor to specify a limit on the maximum
possible loss, without setting a limit on the maximum possible gain. "Buy"
trailing stop orders are the mirror image of sell trailing stop orders, and are most
appropriate for use in falling markets.

1 2 3 4 5 6 7

1,000

If the market price is $100. for a company. Inputting a sell Trail Order When the share price When the share price falls When the share price When the share price falls
of 1,000 shares with a trail rises to $102, the stop to $101, the stop price will rises to $105, the stop to $103, the order will
of 2 means that the price will rise to $100, and remain at $100, and the price will rise to $103, and become a sell market
current stop price is $98 the order will not be order will not be the order will not be order.
executed. executed. executed.

Sell Order
Buy Order

1,000

If the market price is $100. for a company. Inputting a buy Trail Order When the share price falls When the share price When the share price When the share price
of 1,000 shares with a trail to $98, the stop price will rises to $99, the stop price falls to $95, the stop price rises to $97, the order will
of 2 means that the fall to $100, and the order will remain at $100, and will fall to $97, and the become a buy market
current stop price is $102. will not be executed. the order will not be order will not be order.
executed. executed.

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 Trailing Stop Limit Order:
A Trailing Stop Limit Order is designed to allow an investor to specify a limit on
the maximum possible loss, without setting a limit on the maximum possible
gain. A sell trailing stop limit moves with the market price, and continually recal-
culates the stop trigger price at a fixed amount below the market price, based on
the user-defined "trailing" amount. The limit order price is also continually recal-
culated based on the limit offset. As the market price rises, both the stop price and
the limit price rise by the trail amount and limit offset respectively, but if the stock
price falls, the stop price remains unchanged, and when the stop price is hit a
limit order is submitted at the last calculated limit price. A "Buy" trailing stop limit
order is the mirror image of a sell trailing stop limit, and is generally used in
falling markets.
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97
100

If the market price of the Inputting a Trailing Limit Inputting a limit offset of 1 When the share price When the share price falls When the share price When the share price falls
shares of a company is Stop sell order at $100 with means that the current rises to $102, the stop to $101, the stop price will rises to $105, the stop to $103, the order will
$100. a trail of 2 means that the limit price is $97. price will rise to $100, and remain at $100, and the price will rise to $103, and become a limit order with
current stop price is $98. the limit price will rise to limit price will remain at the limit price will rise to a limit price of $102.
$99, and the order will $99, and the order will $102, and the order will
not be executed. not be executed. not be executed.

Sell Order
Buy Order

103
100

If the market price of the Inputting a Trailing Limit Inputting a limit offset of 1 When the share price falls When the share price When the share price When the share price
shares of a company is Stop buy order at 100 with means that the current to $98, the stop price will rises to $99, the stop price falls to $95, the stop price rises to $97, the order will
$100. a trail of 2 means that the limit price is $103. fall to $100, and the limit will remain at $100, and will fall to $97, and the become a limit order with
current stop price is $102. price will fall to $101, and the limit price will remain limit price will fall to $98, a limit price of $98.
the order will not be at $101, and the order will and the order will not be
executed. not be executed. executed.

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