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

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  3. Day Order

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  4. Order Splitting

    When brokers split up larger orders to qualify them for the Small ...
  5. Immediate Or Cancel Order - IOC

    An order to buy or sell a security that if not immediately filled, ...
  6. Market Order

    An order that an investor makes through a broker or brokerage ...
RELATED FAQS
  1. How can I use a buy limit order to buy a stock?

    An investor uses a buy limit order to buy a stock at a specific price or better price. Unlike a market order that takes the ... Read Full Answer >>
  2. What is the difference between a buy limit and a stop order?

    A buy limit order is used when an investor wants to open a long position in a stock at a certain price, while a stop order ... Read Full Answer >>
  3. What are some ways to reduce downside risk when holding a long position?

    A trader seeking to minimize his downside risk in an existing long position can do a number of things to protect a portion ... Read Full Answer >>
  4. How do I determine where to set my stop loss?

    Determining stop-loss order placement is all about targeting an allowable risk threshold. This price should be strategically ... Read Full Answer >>
  5. What types of investors are best-suited for stop loss orders?

    From conservative investors to highly speculative day traders, no one likes to see a loss in a portfolio. There are several ... Read Full Answer >>
  6. What are the advantages of a limit order over a market order?

    The primary advantage of a limit order over a market order is that the limit order guarantees market entry at the trader's ... Read Full Answer >>
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