What are Stock Trading Order Types and its Uses

At Tradebulls, we firmly believe that the best possible trading decision is the one that is inclusive of all the available and latent information regarding the stock types and further classification. For the customers and clientele, Tradebulls is the destination for detailed and dependable consultancy for determining the information about stocks and stock orders. Following are the major stock trading order types which can be used in trading:

Market Order

Market Order is one of the most common types of trade orders and is widely dealt with in trade markets across the globes A market order is the one wherein the order is placed to buy or sell a stock at the current market-prices. In this case, the order placement depends on the best market order rate currently available. This makes Market Order one of the most basic and ready to place orders. Therefore, Market Order is the order for buying or selling a stock at market-controlled rates, in which the trader has no individual say.

As the system decides the best available order price, therefore the Market Order is placed without hassles and quickly. The one big disadvantage of Market Order is that the potential investor retains no control over the price. 

Limit Order

This is the type of trade order wherein, unlike Market Order, the investor or the trader gets to set and decide the stock price for buying or selling. In a Limit Order, the trade order for buying or selling a stock is placed at a pre-decided cut-off rate, further classified as a Buy Limit Order and Sell Limit Order. In a Buy Limit Order, the stock is bought at a price equal to or lower than the pre-decided price capping. On the other hand, in a Sell Limit Order, the stock is sold at a price equal to or higher than the pre-decided price capping. 

As can be observed, a Limit Order comes in handy when a trader wishes to set the price of the stock at a market-independent rate due to a variety of reasons. This is very helpful when the market price fluctuations are high. A Limit Order, thus, ensures a high degree of flexibility for the trader. Alternately, a Limit Order also gives ample time to a trader who is not inclined towards keeping a tab over the market prices.

Stop Order

A Stop order is a trade order where the trader can stop the order or can leave the trading channel once a particular price for the stock is reached. The order is placed only after the stock reaches a pre-decided price. A Stop Loss order is a very crucial trade order and is widely used by traders to ensure that they do not undergo severe loss in the event of any rapid market turbulence. Therefore, it can be said that a Stop Order is meant to serve as a cushion for saving a trader from any significant loss.

Trailing Stop Order

A Trailing Stop Order is a trade Order where the percentage fluctuation in market price decides the price at which a particular stock will be sold.

Tradebulls offers a premium process and knowledge consultancy about the various types of stock orders and how to use them for your financial advantage. The advisory and brokerage services take into account the fact that a wide-ranging investment portfolio, be it in stocks or general capital investment implies capital safety and also market leverage. At Tradebulls, we focus on long-term customer relationships through intricate market forecasting and proven benefits.