Trading Orders Types: Definition, Meaning, and Examples

1. Buy Order:

A buy order is a request by an investor to purchase a certain amount of a financial instrument, such as stocks, bonds, or commodities, at a specified price or the best available market price.

By placing a buy order, the investor aims to gain ownership of the asset. These orders are processed through a brokerage or trading platform and can be submitted during trading hours or, in some cases, outside regular market hours. Executing a buy order transfers the asset's ownership from the seller to the buyer, with the corresponding funds moving from the buyer's account to the seller's account.

2. Sell Order:

A sell order is an instruction from an investor to sell a specific quantity of a financial instrument, such as stocks, bonds, or commodities, at a specified price or the best available market price.

When an investor places a sell order, they intend to relinquish ownership of the asset in exchange for cash or other assets. Like buy orders, sell orders are carried out through brokerage or trading platforms and can sometimes be placed during or outside regular market hours.

Executing a sell order results in the transfer of the asset's ownership from the seller to the buyer, with the corresponding funds moving from the buyer's account to the seller's account.

3. Market Order:

A market order is an instruction from a trader to a broker to execute a trade immediately at the best available market price.

Unlike limit orders, market orders do not specify a price; they focus on execution speed. Market orders are typically used when ensuring the trade is executed is more critical than the price at which it occurs.

While market orders ensure quick execution, the actual fill price may differ from the last traded price due to market volatility and liquidity. They are often used for highly liquid securities with narrow bid-ask spreads, where the difference between buying and selling prices is minimal.

4. Limit Order:

A limit order is a type of trading order that specifies the highest price a buyer is willing to pay or the lowest price a seller is willing to accept for a security.

Unlike market orders, which focus on execution speed, limit orders allow investors to control the price at which their trade is executed. A limit order remains active until it is executed, canceled, or expires.

If the market price reaches or exceeds the specified limit price, the limit order is triggered, and the trade is executed at the limit price or better. Limit orders provide investors with more control over their trades and can help prevent unwanted slippage in volatile market conditions.

5. Stop-Loss Order:

A stop-loss order is a risk management tool used by investors to limit potential losses on a trading position. It is an order placed with a broker to sell a security once it reaches a predetermined price, known as the stop price.

The stop price is set below the current market price for long positions and above the current market price for short positions. When the stop price is reached or surpassed, the stop-loss order is triggered, and the security is sold at the current market price, helping to minimize further losses.

Traders frequently use stop-loss orders to protect profits and manage risk, particularly in volatile markets where price changes can be significant.

6. Trailing Stop Order:

A trailing stop order is a modified version of the standard stop-loss order, enabling investors to secure profits and limit losses by adjusting the stop price as the market price of the security moves favorably.

In a trailing stop order, the stop price is set at a specific percentage or dollar amount below the current market price for long positions and above it for short positions. As the market price increases (for long positions) or decreases (for short positions), the stop price automatically updates to maintain the set distance.

If the market price reverses and hits the stop price, the trailing stop order is activated, and the security is sold at the current market price. Trailing stop orders are particularly beneficial for capturing gains in trending markets while guarding against sudden reversals.

7. Cover Order:

A cover order is a trading order that merges a market order with a stop-loss order, enabling traders to open a new position while simultaneously safeguarding against potential losses.

When placing a cover order, traders set both the entry price (market price) and the stop-loss price. If the market price reaches the entry price, the market order is executed, starting the new position.

Simultaneously, the stop-loss order is activated to protect against adverse price movements. If the market price hits or surpasses the stop-loss price, the stop-loss order is triggered, and the position is automatically closed to limit losses.

Cover orders are often used by traders who wish to enter a new position with predefined risk parameters, providing a convenient way to manage both entry and exit strategies at once.

8. Bracket Order:

A bracket order is used in trading securities, allowing investors to place multiple orders simultaneously. It includes three components: the initial order to enter a position, a profit-taking order (limit order) to secure gains if the trade moves in the desired direction, and a stop-loss order to limit potential losses if the trade goes against the investor.

It essentially brackets the initial order with two additional orders, establishing a predetermined profit target and an acceptable loss level. Once the initial order is executed, the profit-taking and stop-loss orders are automatically placed with specified price levels relative to the entry price. This order type aids traders in managing risk and securing profits without constant market monitoring.

9. Immediate Order:

An immediate order is an instruction from a trader to execute a transaction at the best available market price.

Unlike limit orders, which specify a buy or sell price, an immediate order is executed at the current market price as quickly as possible. This type of order ensures prompt execution but does not guarantee a specific price.

Immediate orders are typically used when the priority is to execute the trade quickly, regardless of the exact price. They are commonly employed in fast-moving markets or when the trader needs to enter or exit a position swiftly.

10. Cancel Order:

A cancel order is a request from a trader to withdraw or annul a previously submitted order that has not yet been executed.

Traders might cancel an order for various reasons, such as changes in market conditions, shifts in trading strategy, or simply an error in the initial order entry. Canceling an order effectively removes it from the order book, preventing execution.

This order type allows traders to adjust their trading plans in response to changing circumstances and helps them avoid unintended trades.

11. Delivery Order:

A delivery order is an investor's directive to a broker to transfer securities ownership from the seller’s account to the buyer’s account after a trade is completed.

Unlike intraday orders, which are for short-term trading and don't involve physical securities transfer, delivery orders result in the actual delivery of assets.

This order type is often used in long-term investment strategies, such as buy-and-hold or dividend investing, where investors aim to accumulate assets over time. Delivery orders are typically linked to cash transactions, where the buyer pays the full amount for the securities bought.

12. Intraday Order:

An intraday order is a trading order meant to be executed within the same trading day. Unlike delivery orders, which involve physical securities transfer and are held longer, intraday orders focus on short-term trading opportunities.

Day traders and active investors frequently use them to capitalize on short-term price changes. Depending on the trader’s strategy, intraday orders may include market, limit, stop, or other types. These orders must be executed before the market closes, as they don't carry over to the next session.

13. Good Till Triggered Order (GTT):

A good till triggered (GTT) order remains active until a specific condition or trigger is met. Once this condition is satisfied, the order becomes active and is executed.

GTT orders are often used for conditional orders, like stop-loss or take-profit orders, where execution depends on reaching a certain price level.

Unlike immediate orders, executed at the current market price, GTT orders let traders set predefined activation conditions. This provides flexibility and automation, allowing traders to manage positions effectively without constant monitoring.

14. Good Till Canceled Order (GTC):

A good till canceled (GTC) order is a trader’s instruction to a broker to keep an order active until executed or canceled by the trader.

Unlike intraday orders, which are valid only for the trading day, GTC orders remain in the market indefinitely until canceled. This type is often used for long-term strategies or trades with extended time frames, where traders wait for the desired price level.

GTC orders offer convenience and flexibility, allowing traders to set orders in advance and potentially benefit from favorable price movements over time.

15. Immediate or Cancel Order (IOC):

An Immediate or Cancel (IOC) order in trading requires immediate execution of part or all of the order at the best available price, with any unfilled portion canceled.

Essentially, it’s an order for immediate transaction execution, accepting only partial fulfillment if necessary. Any unfulfilled part is canceled if the entire order can't be executed immediately.

This order type is beneficial for traders prioritizing quick execution and accepting partial fills when market liquidity is insufficient for the entire order at once.

16. Fill or Kill Order (FOK):

A Fill or Kill (FOK) order mandates the immediate and complete execution of the entire order quantity at the specified price or better.

If the order can't be filled immediately, it is canceled. FOK orders are typically used when traders want to ensure their entire order is executed quickly or not at all.

This order type prevents partial fills and ensures the trader’s goal is achieved immediately, without any unfilled portions remaining.

17. All or None Order (AON):

An All or None (AON) order is a type of order where the entire quantity must be executed at once, or it will not be executed at all.

Unlike a Fill or Kill order, which requires immediate execution of the entire order, an AON order can be filled over time as long as the full quantity is eventually executed.

This order type is particularly beneficial for traders who want to ensure they receive the complete quantity in a single transaction, avoiding partial fills.

18. One Cancels the Other (OCO) Order:

A One Cancels the Other (OCO) order is a type of order where executing one part automatically cancels the other. It includes a primary order and a secondary order.

If either the primary or secondary order is executed, the other is automatically canceled. OCO orders are often used by traders to set both a stop-loss order and a take-profit order simultaneously, helping them manage potential losses while securing profits.

19. Market-on-close (MOC) order:

A market-on-close (MOC) order is a trading order executed at the market price at the end of the trading day.

MOC orders are typically submitted shortly before the market closes and are executed at the prevailing market price when the closing bell rings. MOC orders ensure traders can participate in the closing auction, reflecting the asset’s true market value at the end of the day.

They are commonly used by institutional investors and traders who wish to execute large orders without affecting the market price or who want to capitalize on any price anomalies during the closing auction.

20. Market-on-open (MOO) order:

A market-on-open (MOO) order is a trading order executed at the market price at the opening of the trading day.

MOO orders are typically submitted before the market opens and are executed at the prevailing market price when trading begins. MOO orders allow traders to participate in the opening auction and quickly establish positions at the start of the trading session.

They are often used by traders reacting to overnight news or events that may affect the market price or who wish to take advantage of discrepancies between the previous day’s closing and the current day’s opening price.

21. Take-Profit Order:

A Take-Profit order is an order type used by traders to automatically close a position when a predetermined profit level is reached.

It allows traders to secure profits without needing to constantly monitor the market. Once the price reaches the specified level, the take-profit order is activated, and the position is closed at the best available price.

Take-Profit orders are essential for risk management and maintaining disciplined trading practices.

22. Trailing Take-Profit Order:

A Trailing Take-Profit order is a dynamic version of a traditional Take-Profit order. Instead of setting a fixed price target, it sets a percentage or fixed amount away from the current market price.

As the market price moves in favor of the trader, the take-profit level automatically adjusts or “trails” the market price, maintaining the specified distance. If the market reverses, the take-profit level remains fixed, allowing the trader to capture profits while allowing for market fluctuations.

23. Iceberg Order:

An Iceberg order, also known as a hidden order, is a large order split into smaller, undisclosed parts for execution. Only a portion of the total order is visible to the market, while the rest remains hidden.

As the visible part is executed, new portions are automatically revealed until the entire order is filled. Institutional investors and traders use iceberg orders to conceal the true size of their orders, preventing significant impacts on market prices.

This order type helps avoid front-running and slippage by hiding the trader’s true intentions.

24. Day Order:

A day order is a trading order that remains active only for the trading day on which it is placed. Any unfilled portions are automatically canceled when the market closes for the day.

Short-term traders commonly use day orders to execute trades within a single session. They provide control over the timing of trades, ensuring the order is active only for the intended trading day.

Day orders are suitable for traders who closely monitor market movements and aim to capitalize on short-term price changes.

25. Good Until Date (GTD) Order:

A good until date (GTD) order is a trading order that remains active until a specified date chosen by the trader, unless filled or canceled before that date.

Unlike day orders, GTD orders are not canceled automatically at the end of the trading day. Instead, they allow traders to specify a date, typically up to 90 days, during which the order remains active.

GTD orders provide traders with flexibility in timing their trades, allowing them to execute strategies over a longer period. They are useful for traders with specific timeframes in mind or who wish to align their activities with certain events or market conditions.

26. Good until canceled (GTC) order:

A good until canceled (GTC) order is a type of trading order that remains active indefinitely until it is either filled or manually canceled by the trader.

Unlike day orders and GTD orders, GTC orders do not have an expiration date and will stay in the market until the trader takes action. GTC orders offer traders maximum flexibility, allowing them to maintain their market positions for as long as necessary to meet their trading goals.

They are often used for long-term investment strategies or for placing orders that may take time to execute, such as large block trades or in illiquid securities.

27. Expiry order:

An expiry order is a type of trading order that automatically expires if it is not filled within a specific time period set by the trader.

Expiry orders are similar to GTD orders in that they have a predefined expiration date. However, the expiration period for expiry orders is usually much shorter, ranging from minutes to hours. If an expiry order is not filled before the expiration time, it is automatically canceled, and no further attempts are made to execute the trade.

Expiry orders are often used by traders who want to limit the time frame during which their orders remain active, such as during high volatility periods or when trading around specific events or news announcements.

28. Stop-limit order:

A stop-limit order is a type of trading order that combines elements of a stop order and a limit order. It includes two key price points: the stop price and the limit price.

When the stop price is reached, the stop-limit order becomes a limit order, and it will only be executed at the specified limit price or better. If the limit price is not met, the order may not be filled.

Traders commonly use stop-limit orders to manage risk and protect against adverse price movements, as they allow traders to specify both the price at which they are willing to sell or buy an asset (the limit price) and the price at which they want the order to be triggered (the stop price).

29. Trailing stop-limit order:

A trailing stop-limit order is a type of trading order that automatically adjusts the stop price as the market price of the underlying asset moves in a favorable direction. The stop price “trails” the market price by a specified amount, known as the trailing amount or trailing percentage.

If the market price moves in the trader’s favor, the stop price will adjust accordingly, allowing the trader to lock in profits while still giving the trade room to potentially capture further gains. However, if the market price reverses direction and reaches the stop price, the trailing stop-limit order becomes a limit order, and it will only be executed at the specified limit price or better.

Trailing stop-limit orders are commonly used by traders to automate the protection of profits and risk management, particularly in volatile markets or when trading assets with large price swings.

30. Sweep order:

A sweep order is a type of trading order designed to quickly execute a large order by “sweeping” the available liquidity across multiple venues or order books.

Sweep orders are typically executed using algorithmic trading strategies that automatically split the order into smaller portions and route them to different trading venues to minimize market impact and achieve the best possible price.

Sweep orders are commonly used by institutional investors and traders who need to execute large orders without significantly impacting the market price or who wish to take advantage of liquidity available across multiple trading venues.

They are particularly useful in markets with fragmented liquidity or when trading assets with limited trading volume.

31. TWAP (Time-Weighted Average Price) order:

A TWAP order is a trading strategy where the execution of a large order is spread evenly over a specified time period.

A TWAP order aims to achieve a price that closely matches the average price of the asset throughout the order. In a TWAP order, the total order size is divided into smaller orders, executed regularly throughout the trading day. The intervals are typically evenly spaced to ensure that the order is executed in a time-weighted manner.

By spreading out the execution over time, TWAP orders aim to minimize market impact and avoid adverse price movements that may occur with large, single transactions. TWAP orders are often used by institutional investors and algorithmic traders who need to execute large orders without causing significant price fluctuations in the market.

32. VWAP (Volume-Weighted Average Price) order:

A VWAP order is designed to execute trades at prices that align closely with the volume-weighted average price (VWAP) of an asset over a specific time period.

The VWAP is determined by dividing the total value traded (price times volume) by the total trading volume during the specified period. VWAP orders aim to secure execution prices near the average price paid by all market participants within that time frame.

VWAP orders are frequently utilized by institutional investors and large traders who need to execute substantial orders while minimizing market impact. By targeting the VWAP, traders aim to avoid prices that significantly deviate from the average market price during the trading period.

VWAP orders can be executed across different time frames, such as intraday VWAP, which calculates the average price during the trading day, or multi-day VWAP, which calculates the average price over several days.

33. POV (Participation order):

A Participation Order, often known as POV orders, is a trading order where the trader specifies the percentage of the total trading volume they wish to engage in.

Instead of setting a fixed number of shares or a specific dollar amount, the trader defines the percentage of the market volume they intend to trade. The order then dynamically adjusts its size based on the overall market trading volume.

If the trading volume rises, the order size increases proportionally, and if the trading volume falls, the order size decreases accordingly.

The goal of a POV order is to maintain a consistent level of market participation regardless of fluctuations in trading activity. This order type allows traders to adapt to changing market conditions, ensuring their order size remains relative to the overall market volume.

34. Market-if-Touched (MIT) order:

A Market-if-Touched (MIT) order is a conditional order that becomes a market order to buy or sell a security when the market price reaches a specified trigger price.

MIT orders are similar to stop orders but are triggered when the market price touches the specified trigger price instead of moving through it. Traders often use MIT orders to enter or exit positions at predetermined price levels, allowing for greater control over execution timing and price levels.

35. Auction-only order:

An Auction-Only order is a trading instruction that specifies participation solely in a trading venue’s auction process, such as a stock exchange.

In financial markets, auctions are periodic events where buyers and sellers submit their orders, and the exchange matches them to determine a single price at which all trades will be executed.

Auction-Only orders enable traders to partake in these auction processes without executing trades outside the auction. This type of order is often used by traders who prefer to execute large trades during auction periods when liquidity is typically higher, and price discovery is more efficient.

By restricting participation to auctions only, traders can leverage the price-setting mechanism of the auction without exposing themselves to potential adverse price movements during continuous trading.

36. Dark pool order:

A Dark Pool order is a trading order executed off-exchange in a private venue known as a dark pool.

Dark pools are alternative trading systems that match buy and sell orders anonymously, away from public marketplaces like stock exchanges. Dark pool orders are not displayed in the public order book, and trade details are typically not reported immediately to the broader market.

Instead, dark pool orders are executed privately between participating parties, often institutional investors, without affecting the price on public exchanges.

Dark pools are used by traders who aim to minimize market impact and avoid revealing their trading intentions to the broader market. By executing trades in dark pools, traders can access additional liquidity and potentially achieve better execution prices than trading on public exchanges, where large orders may face significant price slippage.

37. Cross order:

A cross order involves the simultaneous execution of buy and sell orders for the same security at a predetermined price.

Cross orders are typically used to facilitate block trades or match orders between market participants without affecting the public order book.

Cross orders may be executed on a crossing network or through a designated cross mechanism provided by the exchange, ensuring that both buy and sell orders are executed at a fair and equitable price.

38. Midpoint peg order (NYSE):

A midpoint peg order is used on the New York Stock Exchange (NYSE) to instruct the broker to place the order at the midpoint of the current best bid and ask prices.

The midpoint is calculated by adding the best bid and ask prices together and dividing by two.

This type of order is designed to execute at a price halfway between the current bid and ask, aiming to capture price improvement while avoiding immediate execution. Midpoint peg orders are typically used by traders who wish to minimize market impact and avoid adverse selection.

39. Immediate or Cancel (IOC+) order (NASDAQ):

An Immediate or Cancel (IOC+) order on the NASDAQ requires that the order be executed immediately, either partially or fully, upon reaching the exchange.

If immediate execution is not possible, the order is canceled, whether partially or fully filled. Traders often use IOC+ orders to prioritize speed of execution, accepting partial fills if necessary.

These orders are particularly advantageous in rapidly changing markets where prices fluctuate quickly.

40. Extended hours order (some exchanges):

Extended hours orders are those placed outside regular trading times, either before the market opens or after it closes.

These orders enable traders to buy or sell securities when the main market is closed, offering more flexibility and access.

Exchanges may have specific rules for extended hours trading, including restrictions on order types and potential differences in liquidity compared to normal trading hours.

41. One-Triggers-a-One-Cancels-the-Other (OTOCO) order:

A One-Triggers-a-One-Cancels-the-Other (OTOCO) order is a conditional order comprising two linked orders.

When one order is executed, the other is automatically canceled.

Traders use this order type to manage risk and execute strategies involving multiple positions. For instance, a trader might use an OTOCO order to place a limit order to buy a security and a stop-loss order to sell it, with one order's execution canceling the other.

42. Pegged order:

A pegged order is an order type where the price adjusts dynamically based on a reference point, such as the best bid or ask price, the midpoint of the bid-ask spread, or the last traded price.

Pegged orders automatically modify the order price according to market conditions, helping traders maintain a competitive stance relative to current market prices. Common types include pegged-to-market, pegged-to-primary, and pegged-to-midpoint orders.

43. Discretionary order:

A discretionary order allows the broker or trader to have discretion over the execution price and timing within specified parameters.

Unlike a standard limit or market order, where price and timing are fixed, a discretionary order permits the broker to use judgment to achieve the best possible execution for the client.

Such orders are often utilized in uncertain market conditions or when the trader seeks potential price improvements.

44. Hidden order:

A hidden order is an order type where the full size is not visible in the order book to the market.

Only part of the order is displayed, while the rest remains hidden from other market participants.

Hidden orders help prevent information leakage and reduce market impact, particularly for large orders that could move the market if fully revealed. By concealing the full size, traders can avoid alerting others and potentially secure better execution prices.

What are the different order types in trading?

There are numerous order types in trading—at least 48! Below, these different order types are listed and explained.

However, there are three main “principles” of order types:

Market orders allow you to buy or sell stocks quickly at the best available market price. There’s no guarantee of the exact price at which your order will be filled.

Limit orders enable you to set specific buying or selling conditions, establishing a maximum price you’re willing to pay for stocks or a minimum price you’re willing to accept when selling. This approach gives you control over transaction prices, although it’s not guaranteed that your order will be filled unless these conditions are met.

Stop-limit orders are another strategy where traders set specific triggers—the stop price—at which the order becomes active, converting into either limit or market orders based on predefined instructions. This is usually designed with loss mitigation in mind while also ensuring potential gains are secured.

What are the order types in trading?

There are many different order types in trading, such as market orders, limit orders, and stop orders. The choice is yours. Each order type provides different instructions for trade execution.

Placing a market order is like buying something at its listed price in a store. You decide how much of the stock you want to buy or sell, and your trade is executed immediately at the current price. Although this doesn’t guarantee a specific price, it offers quick transaction completion. Essentially, you’re saying, “Buy this right away at any cost.”

On the other hand, limit orders are similar to negotiating prices at a market. With these, you specify the price point for buying or selling stocks that suits your financial strategy. This order is activated if and when the stock hits your specified price limit—setting either the highest amount you’d spend as a buyer or the lowest sale figure acceptable as a seller, akin to saying, “I’ll only proceed with purchase if my pricing conditions are met.” However, there’s no guarantee your order will be filled—you might end up with no execution.

Finally, stop orders act like an alert system, becoming active and turning into market orders once certain price conditions—set by the trader—are met within the market activity surrounding chosen securities’ price movements.

In essence, a stop order says, “If the security’s price reaches a certain level, execute the transaction immediately,” serving as a safeguard against potential losses or enabling the securing of realized profits.

What is a trade order?

A trade order is an instruction given by an investor to a brokerage firm or broker to buy or sell a security such as stocks, bonds, options, or commodities.

A trade order is like placing an order at a restaurant, but in this case, you’re instructing your broker or brokerage service to buy or sell a security on your behalf.

These instructions can be communicated via phone call, executed online using trading platforms, or implemented through automated systems and algorithmic trading.

At the core of securities market transactions lies the trade order. This mechanism enables traders to set specific parameters for their trades, such as the execution price level, the duration of the order before it expires, and conditions that could activate or cancel an order based on another’s status.

The variety in types of trade orders significantly influences when and how well-priced a transaction occurs—if it happens at all.

How are trade orders executed?

Trade orders are executed through a process involving various entities and systems. Completing a trade in the stock market is similar to participating in a relay race. The order, much like the baton, must pass through various intermediaries before reaching the market.

This process of executing buy or sell orders on an investor’s behalf is called order execution. It can occur manually or electronically based on predefined criteria set by account holders.

Orders may be directed to different venues for execution, including exchange floors like the NYSE, third-party market makers, or even internally within a brokerage firm using their inventories. Electronic Communications Networks (ECNs) are often used for matching buy and sell limit orders because they are automated.

It’s important to note that executing an order is not instantaneous due to several steps involving brokers before reaching the market—potentially leading to price fluctuations during this interval. Brokers tasked with these transactions must seek optimal conditions across various markets—including dealing with other traders and electronic networks—to ensure clients obtain favorable prices when trades are executed.

Why are different order types necessary?

Different order types in trading are necessary because they cater to investors’ and traders’ diverse needs and strategies. Different order types in trading can be likened to various tools within a toolbox. Each has its specific purpose, much like using different tools for nailing or screwing. Various order types are essential for investors to implement their strategies and meet their specific investing objectives.

For traders who prioritize the immediacy of transaction completion over obtaining a specific price point, market orders are crucial, especially when navigating rapidly fluctuating markets.

Limit orders serve those who want more control over the execution price of their transactions. Meanwhile, stop orders allow traders to automatically initiate buy or sell actions for a stock once it hits a set price threshold—this is instrumental in safeguarding profits or limiting losses.

Several other order categories exist, such as day orders, good ‘til canceled (GTC) orders, and extended hours trading options, offering adaptability regarding how long an investor wants their trades pending before execution or expiration.

What is the order type for options?

Common order types for options include Market Order, Limit Order, Stop Order, Stop-Limit Order, and Trailing Stop Order.

Just as different gears are essential for various driving scenarios in a car, trading incorporates distinct order types tailored to its needs. Options trading uses these order types, which are similar to those used in stock trading but have additional specific characteristics.

When executing options trades, traders may choose either market orders or limit orders. Such orders can be tagged with time-sensitive constraints like All or None (AON), Day Order, Fill or Kill (FOK), Good Till Canceled (GTC), Immediate or Cancel (IOC), and Market On Close (MOC).

For exiting positions in options trading, there are several strategies: Stop Orders—which can be market stop orders or limit stop orders, Trailing Stop Orders, and Contingent Orders that trigger the closing of a trade based on predetermined conditions being satisfied.

What is the order type for futures?

Some common order types for futures contracts include Market Order, Limit Order, Stop Order, Stop-Limit Order, Market If Touched (MIT) Order, and Iceberg Order. Futures contracts are typically categorized into different order types based on their underlying asset or the nature of the contract.

For futures trading, just like in stock trading, various order types come with unique traits. Among these are market orders, limit orders, including sell limits, and stop orders—all defined by certain conditions under which they can be executed.

When a trader places a market limit order, it is fulfilled at the most advantageous current price available. If this order cannot be completed entirely at once, the unfilled portion becomes a standard limit order.

Sell limit orders allow traders to set a maximum buying price or a minimum selling price for their future contracts—they ensure execution will not occur at worse prices than predefined but may secure better ones. Notably, until activated when someone trades on its predetermined trigger value in the marketplace, an unexecuted sell limit remains dormant off-book.