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What is a market order?
A market order is an order that is filled at whatever price is available. Stock prices, for example, are always moving during market hours and if you place a market order you will buy or sell your stock at whatever the market allows at the particular moment. Market orders should be used when fill price is of no concern to the investor. If you are looking to pick up some shares for a long-term investment then market orders are just fine.
What is a limit order?
Limit order limits the price at which your order can be filled.
Example of a limit order. You want to buy XYZ stock at $65/share and sell it around $67/share. You enter a BUY limit order for $65.15. Your broker won't purchase that stock for you at a higher price than $65.15.
Limit orders are typically used by traders rather than investors because traders require a very close price fills so as not to give away too much profit on either the buy side or sell side.
What is a reserve order?
A reserve order is an order that only shows a small amount of your purchase or sell to the public. When you are trading/investing you can see other traders positions being filled as can they with your orders. Being able to see other people's orders can allow other traders and investors to "piggyback" on your trades. Once you become a "big dog" trader it becomes more important to hide your true position size.
A market order is an order that is filled at whatever price is available. Stock prices, for example, are always moving during market hours and if you place a market order you will buy or sell your stock at whatever the market allows at the particular moment. Market orders should be used when fill price is of no concern to the investor. If you are looking to pick up some shares for a long-term investment then market orders are just fine.
What is a limit order?
Limit order limits the price at which your order can be filled.
Example of a limit order. You want to buy XYZ stock at $65/share and sell it around $67/share. You enter a BUY limit order for $65.15. Your broker won't purchase that stock for you at a higher price than $65.15.
Limit orders are typically used by traders rather than investors because traders require a very close price fills so as not to give away too much profit on either the buy side or sell side.
What is a reserve order?
A reserve order is an order that only shows a small amount of your purchase or sell to the public. When you are trading/investing you can see other traders positions being filled as can they with your orders. Being able to see other people's orders can allow other traders and investors to "piggyback" on your trades. Once you become a "big dog" trader it becomes more important to hide your true position size.
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