Order

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DEFINITION of 'Order'

An investor's instructions to a broker or brokerage firm to purchase or sell a security. Orders are typically placed over the phone or online. Orders fall into different available types which allow investors to place restrictions on their orders affecting the price and time at which the order can be executed. These order instructions will affect the investor's profit or loss on the transaction and, in some cases, whether the order is executed at all.

INVESTOPEDIA EXPLAINS 'Order'

For example, a market order instructs the brokerage to complete the order at the next available price and by the end of the day. A limit order instructs the brokerage to buy or sell a security at or below a specified price. Limit orders remain in effect until they are executed, until the investor cancels them or until they expire. A day order must be executed during the same trading day that the order is placed, while a fill or kill order must be completed immediately and completely or not at all. These are just a few examples of time and price restrictions that can be placed on orders.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. At Limit

    An order that sets a maximum limit on the buy price and/or a ...
  3. Day Order

    An order to buy or sell a security that automatically expires ...
  4. Immediate Or Cancel Order - IOC

    An order to buy or sell a security that if not immediately filled, ...
  5. Multi-Leg Options Order

    A type of order that allows an option trader to simultaneously ...
  6. All Or None - AON

    A condition used on a buy or sell order to instruct the broker ...
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