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.

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  2. Should I enter a limit order to buy a position with a bid and ask that are far apart?

    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  3. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>
  4. How can I use a stop order to limit my losses on a long stock position?

    A stop order is a useful order type when you are trying to limit losses on your long stock position. When you are long a ... Read Full Answer >>
  5. What is the difference between a stop and a market order?

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  6. 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 >>
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