| Market |
A market order is an immediate instruction to buy or sell a security. It guarantees execution, but the price is not guaranteed and depends on the prevailing market conditions. The last traded price might not be the execution price. |
| Limit |
A limit order aims to buy or sell a security at a specific price or better. For example, an investor could place a buy limit order for ABC stock at $10 or lower. The order will only execute if the ABC stock price drops to $10 or lower. |
| Stop |
Often referred to as a stop-loss order, a stop order turns into a market order once the security reaches a specific price, known as the stop price. |
| Buy Stop |
A buy stop order is placed at a stop price above the current market price to limit loss or protect profit on a short-sold stock. Conversely, a sell stop order is placed at a stop price below the current market price to protect a profit or limit a loss on a stock an investor owns. |
