Special Orders

Special orders and trading instructions are sometimes used to facilitate transactions between active market participants. These "special" transactions are typically designed for one-time purchases or sales, or as an alternative to normal market and limit orders. Some special orders and trading instructions are used for automated trading where the order is triggered by another event, such as a stock's value reaching a certain price level. Others are programmed to activate automatically when end-of day (EOD) market activity indicates the value of an asset has reached a specific threshold.

Special orders, or market-on-open orders, are orders to buy or sell a stock when the market on that stock opens. Traders use special orders to manage their risk, especially during volatile periods in which markets may close before the intended time for a trade. In some cases, you need to know whether your buy order will be executed early—when it executes—or if your sell order will not be executed at all.

Stop order

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price. Investors generally use a buy stop order to limit a loss or to protect a profit on a stock that they have sold short. A sell stop order is entered at a stop price below the current market price.

Stop orders are an important tool for any investor. Stop orders help you to limit losses or capitalize on opportunities that you see in the stock market. They also protect your profits when you are long a stock which has pulled back from an extended period of high price climb. A stop order is an order to buy or sell a particular stock once it reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order

Stop-limit order

Stop-limit orders are more flexible and less cumbersome than stop orders. The investor can control the price at which an order can be executed by adjusting the stop price and providing a limit price for each leg of the order. In other words, if an investor wants to buy 100 shares of stock at $20 a share, a stop order may only be able to buy $10 worth of shares because it doesn't have any way to set the margin requirement ($10) once reached. A stop-limit order on the other hand will be allowed to execute long or short against either price level up to its limit price or better.

Stop limit order is a special type of market order used by investors to control the price at which they want their stop loss or stop profit orders to be executed.