What is a market/limit order?

What are the different types of market/limit orders?

  1. Market Order

    When you place a market order, you are asking for an immediate execution at the best price available in the marketplace. Market orders are the most common type of order, and have the advantage of nearly always being filled, since a market order does not specify a price at which the trade is to be executed.

    In a volatile fast moving market, a market order may receive an execution price significantly different from the quoted price of that security when the order was entered. Also, if you place a market order when the markets are closed, such as at night, over weekends or on market holidays, your order will be executed when the market next opens. There can be substantial changes between the most recent closing price of a security (which is the price usually quoted on the website during hours when the market is not open) and the next opening or available price.

  2. Limit Order

    A limit order allows you to specify the price (the limit) you would like your order to be executed at. A limit order to buy a security means that the order will be executed at the limit price or lower, and a limit order to sell a security means that the order will be executed at the limit price or higher. Limit orders have the advantage, when they are executed, of being executed at a specific price, or better; however your limit order may never be executed because the limit price may never be met or the market could quickly move away from your limit price before your order can be filled.

  3. Stop Order

    With stop orders, you place an order to be executed only after the stock has reached a specified price (the stop price). A stop order to buy a security is placed above the current market price and automatically becomes a market order to buy when the stop price is reached. A stop order to sell a security is placed below the current market price and automatically becomes a market order to sell when the stop price is reached.

    As with any market order in volatile markets, the market order triggered at the stop price may receive an execution price significantly different from the stop price of that security when the order is triggered. Also a stop order may be executed at a price very different from the stop price if, for example, the stop order was entered after a market close and the security subsequently opens at a price much higher or lower, as compared to the applicable stop price.

  4. Stop-Limit Order

    A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy or to sell at the specified price.

    The benefit of a stop-limit order is that you can control the price at which the trade will get executed. As with all limit orders, a stop-limit order may never get filled if the stock’s price never reaches the specified stop and limit prices. This may happen especially in fast-moving markets where prices fluctuate dramatically.

  5. Spread Specific Order

    When an order is placed to buy or sell NextShares™ exchange-traded managed funds outside of a Window, you can enter the order as a market order or as a “Spread Specific” order. A Spread Specific order allows you to specify the trading costs (up to $0.99) over or under the next end of day NAV for a NextShares™ fund.

    As an illustration, assume that a NextShares™ fund is quoted intraday at a best bid of NAV - $0.01 and a best offer of NAV + $0.02. A Direct Trade market order could be executed at the quoted offer price, in this example, at NAV + $0.02. If the fund’s next published NAV is $20.00, your final trade price would be $20.02. A Spread Specific order to buy may, alternatively, be entered intraday at NAV + $0.01. That order, because it is neither a Window nor a market order, will only execute if the best ask drops to NAV + $0.01. If executed, your final trade price with a next published NAV of $20.00 would be $20.01.

What are “Day” and “Good ‘Till Cancelled (GTC)” orders?

How do I set a limit price or stop price?

What are the order execution and conditions for executing orders?

What are my amounts available for trading?

Can I place market/limit orders when I have a pending window order?

Can I trade with fractional shares and sellable shares?

Can I place a limit, stop, or stop-limit order for a mutual fund?

Which securities can I buy or sell through a market/limit order?

How much does it cost to execute a trade using a market/limit order?

How do I place a market/limit order?

Can I place a market order for an entire folio?