A stock order is an order that is launched by an investor for the purpose of buying or selling an asset on the market and executing its operation.
Types of stock orders
The most common stock market orders are as follows:
Order to market
It is a more aggressive order that seeks to attack the price. It guarantees the execution of all the titles or contracts without guaranteeing an exact execution price.
It is a more conservative type order, since it guarantees a maximum purchase price or a minimum sale price, but not the execution of all the titles or contracts entered. Generally, the maximum validity of this type of orders is usually 90 days.
It is an operation that is sent to the stock market when the price condition established by the investor is met, which may be “greater than or equal” (stop profit) or “less or equal” ( stop loss ) than a listing price (called the condition of activation). The order that is sent to the market will be an order limited to a price or a market order, informed by the investor when the order is registered, and with the same validity as the stop order. It is important to mention that a stop order pending shipment will be activated when, having fulfilled the activation condition, the reported price of said value changes.
There are the following types of stop orders:
- Dynamic Stop:It is a sales order that is sent to the market when a defined condition is met. This condition is a% fluctuation of the listing price or a variation thereof. The order that is sent to the market will be a market order.
- Relatedstop : The related stop order is made up of two related stop sell orders, in such a way that the activation of one of them immediately generates the total cancellation of the other. The order that is shipped to the market will be either a price limited order or a market order.
It is a type of order established under one condition. It is important to mention that several conditions or restrictions cannot be combined with each other, and the validity period is usually that of the session.
The conditions can be of different types:
- All or nothing: The order is sent to the market if there are enough titles for it to be fully executed. If there are not enough titles to run at the marked price or better, the order is voided.
- Execute and cancel: The order is sent to the market executing the available titles and canceling the remaining volume. This condition can only be established with the open market and for limit exchange orders that attack market prices.
- Minimum volume: The order is sent to the market if there is a minimum volume of titles to execute. If there is this minimum but the entire order is not executed, the part not executed remains positioned at the established limit change. If there are no titles for that marked minimum to be executed, the order is automatically canceled.
- Titles to show: The order is sent to the market allowing the possibility of choosing the number of titles that we want to see. The volume of titles to display cannot be less than 250. When the titles shown are executed, a new market order is generated, which is queued at the price.