The type of stock trading orders

On the stock market, there are many types of trades are used. But in fact, most orders are investors that use limit orders and market orders ......

On the stock market, there are many types of trades are used. But in fact, most orders are investors that use limit orders and market orders.

1.Lenh market (market order)

Market Order is an order to buy or sell securities without recording rates, due to the investment made by the broker to comply with price matching.

Market order is a common command used in securities transactions. When using this type of command, investors willing to buy or sell at the current market price and the investor's order is always made. However, due to the supply and price - the stock market decisions. Therefore, market orders are also known as non-binding statement.

a.Uu point

- Market order is an effective tool that can be used to improve the amount of transactions in the market, increase the liquidity of the market.

- Convenient to investors because they only need the volume without indicating specific price transactions and market orders are executed before priority compared with other assorted trades.

- Investors and securities companies will save costs by having fewer errors to correct or cancel orders as well.

b. Limitations

- Easy to cause abnormal price fluctuations, affect the stability of the market price, the order is always the potential to be made at a price not predictable. So, the stock market was put into operation less often use market orders.

Market Orders usually applied only to large investors, professional, have the information related to buying and selling trends stock price movement before, during and after the order is made . Market order is applied mainly in the case of securities for the psychology of selling is to sell quickly and at the market price of the object this command is usually the stock "hot", meaning that the securities are there is a shortage or surplus temporarily.

2. Limit orders (limit order)

Limit orders are orders to buy or sell securities by the investor to the broker to comply with specified price or better.

There are two types of limit orders: limit orders to buy and sell limit orders.

- Limit Order to buy only the highest purchase price that the buyer accepts the transaction.

Limit-sell order indicates the lowest price that the seller accepts the transaction.

A limit order can not usually done right, so investors must determine when the time allowed to cancel the order. During the period of the limit order is not made, the customer can change the limit price. When the allotted time, the command has not been done or has not done enough will be invalidated automatically.

When a limit order, investors need to have an understanding, correctly identified, because vaythuong the limit order is forwarded to the experts rather than the broker commissions.

 a.Uu point

- Customers can have a chance to buy or sell a certain stock prices tothon market price at the time when ordered.

- Limit orders help investors anticipate a gain or loss when the transaction is done.

 b.Nhuoc point

When an investor can place a limit order to accept the risk of loss of investment opportunities, especially in the case of market value in excess of price limits (beyond the control of the customer). In some cases, limit orders can not be made even if the limit price is met due to not meeting the priority rule matching.

3. Stop (stop order)

Stop is a special order to ensure investors can profit taimot certain level and risk prevention in the case of stock prices move in the opposite direction.

After placing the order, if the market price reaches the stop price or pass then stop order becomes reality truong.Co two stop marketing: Stop orders and stop orders to sell to buy.

- Stop orders to sell are placed lower than the market price current price of a stock to sell.

- Stop orders to buy are placed higher price than the market price of securities to be purchased.

Stop orders become market orders when the stock price equals or exceeds the value specified in the stop order price. Stop orders are often professional investors and apply no guarantees for the exercise price will be the price stops. Thus, different stop limit order in that: limit orders are made to ensure price limits or better.

The use cases stop:

-Use the stop to protect the interest of the business in a thuongvu made.

- Use stop orders to protect the interest of the seller in a short sales transaction.

- Use the stop command to prevent large losses in case of purchase immediately.

- Use the stop command to prevent large losses in case of sell first buy later.

a.Uu point

So, stop buying very positive effect for investors in short-selling. Stop selling protective effect profits or limit losses for investors.

b.Nhuoc point

When a large number of the stop is "triggered", the unrest in the transaction will occur when the stop orders become market, thereby distorting stock prices and the purpose of the stop is limited losses and protect profits is not be effected.

To minimize this disadvantage, we proceed combination stop and stop limit orders into limit orders.

Part 2

Stop limit order is used to overcome the uncertainty of the price performance of the underlying stop. For the stop limit order, the investor must specify two prices: One stop price and a limit price. When the market price reaches or through the stop price becomes the stop limit order instead of market orders. .....

1.Lenh stop limit (stop limit order)

Stop limit order is used to overcome the uncertainty of the price performance of the underlying stop. For the stop limit order, the investor must specify two prices: One stop price and a limit price. When the market price reaches or through the stop price becomes the stop limit order instead of market orders.

Restrictions: Do not apply on the OTC market because there is no balance between the price and the broker's orders.

2.Lenh trading at matching prices (ATO)

Trading orders at price matching orders to buy or sell the securities without recording rates, as investors give to brokers to execute orders according mucgia.

The volume of orders shall be added to the total trading volume and the previous allocation c limit orders.

3.The other command

a.Lenh open

The command opens a command in effect indefinitely. With this command, investors require brokers to buy or sell securities at a particular price and value often command until canceled.

 b. Ordinance Amending

 Order amending the order as investors put into the system to modify some of the content on the original order was placed before it (price, volume, buy or sell). Orders are accepted only modify the original order has not been done.

 c. Orders canceled (Cancel order)

The command is canceled by the customer orders into the system to cancel the original order was placed before it. Order cancellation is only accepted when their order is made. Comes in basic commands are the standard commands. The standard command is the command that conditions made investors provisions for brokers when trading. When combined with the standard commands for basic commands, we will have a list of different commands.

 -Valued order of the day (Day orders)

 The command is valid on orders with a value in days. If command is not done during the day, it will be automatically canceled.

 Month-end command (Good Till Month-GTM)

Last month's orders to orders worth up to last month.

 -Valued order until canceled (GTC-Good Till Canceled)

Order valid until canceled orders are valid until revoked or customers have done.

 Freedom of decision-Order (Not Held-NH) - The command is free to determine the orders allowing brokers are free to deciding on the timing and pricing of securities for customers. With this order type, the broker will look at the market and decide the time, the best purchase price for customers but not to be responsible for the consequences of the transaction.

 - All orders made or canceled (All or Not - AON)

Trying to cancel all or that the entire contents of the order to be carried out simultaneously in a transaction, otherwise cancel the order.

 - Order to immediately cancel all or (Fill or Kill-Fok)

Orders made immediately or cancel the entire order is required to immediately implement the entire contents of canceled orders otherwise.

 -Orders made immediately or cancel (IOC-Immediate or Cancel)

Orders made immediately or cancel the order in which that is the whole or part of the contents of the command will be executed immediately, the rest will be canceled.

 -Command at the opening or closing (or opening At the market close on Order)

 Order at the opening or closing is at the time the order is open or closed.

 - Command option (Either / or Contingent Order or Order)

Command is the command option that allows brokers to select one of two options: either buy limit order or a sell stop order. When implemented by a solution, then cancel the other solutions.

- Order to attend but not participate first (PNI)

Order to attend but not participate the first of which is that customers can order to buy or sell securities, but a large number do not depend on time thus creating new value does not change the price of stocks, bonds khoan.Loai market transactions allow the purchase or sale of securities phoichung accumulation or distribution in the market without affecting the supply and demand of the stock market.

 - The command swap (Switch Order)

Command is the command swap sell securities, securities purchased to price fluctuation.

 - Order discount buy (Buy Minus)

Orders are orders to buy discount deals which regulates broker or purchase order or a limit order to buy at prices lower than the market price of the previous trading a bit.

 - Orders increased selling prices (Sell Plus) command selling prices are trading order which requires broker or sell limit orders or market orders to sell at prices higher than the previous trading slightly .

  - Order stock trades (Stocks Crossing) Order that trades the broker command to coordinate with buy orders and sell orders at the same time motchung exchange between two clients to price fluctuation.