What other types of special orders may help investors when executing trades?
In addition to market and limit orders, there are a few other special orders that may be available to the investor, either at a brick-and-mortar brokerage firm or an online brokerage site. A stop order or stop-loss order is used when you want to buy or sell a stock at a specific price, also called the stop price. A buy-stop order is executed at a stop price somewhere above the recent market price. A sell-stop order is executed at a stop price below the current market price. Investors like to use buy-stop and sell-stop orders to limit losses and to protect profits when executing trades. You should check the specific rules at your brokerage firm (whether full service or online) regarding at what price your order will be executed. Some firms use current quoted prices, while other firms use the last-sale price to determine the stop or buy limit price to be executed.
What other special orders can investors use to help secure a certain price or limit a potential loss?
Investors may use other order instructions to help protect their profits or limit potential losses. "Day orders" mean the order is to be fulfilled during the trading day. "Good till cancelled" means the order is in the system for whatever time it takes for the order to be fulfilled and transacted. "Immediate or cancelled order" means an order must be transacted immediately, or it must be cancelled. Check with your firm to discover how it defines the word "immediate." Other special orders may include a "fill-or-kill" order, when an order for stocks must be filled in its entirety, and an "all-or-none" order, in which the trading order to either buy or sell must be executed in its entirety immediately. If it is not executed immediately, an "all-or-none" order will remain active unless it is executed or cancelled by the investor.