investing
Order types
August 15, 2018

The trading day begins. You’ve done your research, and now all you need to do is place the trade. You log in to the Questrade trading platform, go to the order entry tab, and suddenly you need to choose your order types. Which one should you choose?

Use the table below to learn about the different order types available. Depending on your trading strategy, you may use different orders in various situations to meet your trading objectives.

Order type Description
Market orderA market order is the simplest of all order types. It allows you to buy or sell securities at the best available price given in the market at the moment your order is sent for execution. Learn more.
Limit orderLimit orders allow you to specify the maximum price you’ll pay when buying securities, or the minimum you’ll accept when selling them. Learn more.
Stop-loss orderA stop order is a type of order used to buy or sell securities when the market price reaches a specified value, known as the stop price. Stop orders are generally used to limit losses or to protect profits for a security that has been sold short. Learn more.
Stop-limit orderA stop-limit order combines a stop order with a limit order. With this order type, you enter two price points: a stop price and a limit price. If the market value of the security reaches your stop price (first price point), it automatically creates a limit order (second price point), as long as it happens within the specified duration time. Learn more.
Trailing stop orderA trailing stop order is a type of order that triggers a market order to buy or sell a security once the market price reaches a specified percentage or dollar trailing amount that is below the peak price for sells or above the lowest price for buys. Learn more.
Trailing stop-limit orderA trailing-stop limit order is a type of order that triggers a limit order to buy or sell a security once the market price reaches a specified dollar trailing amount that is below the peak price for sells or above the lowest price for buys. Learn more.
Limit on open orderWhen you place a buy order with a limit on open order (LOO), you’re setting the maximum price you’re willing to pay. If the market price at open on the following trading day is at or below the maximum price (limit) you set, your order is processed. If the market price is above the limit you set, your order is cancelled. Learn more.
Limit on close orderWhen you place a buy order with a limit on close order (LOC), you’re setting the maximum price you’re willing to pay. If the market price at close on the current trading day is at or below the maximum price (limit) you set, your order is processed. If the market price is above the limit you set, your order is cancelled. Learn more.

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