Order

In trading, order refers to an instruction given to a broker or a trading platform to buy or sell a security, like stocks, bonds, or commodities, under specific conditions.

There are different types of orders that traders can use:

1. Market order: an order to buy or sell a security immediately at the best current market price;
2. Limit order: an order to buy or sell a security at a specified price or better. It is used when traders want to control the price at which they buy or sell. If the market does not reach the limit price, the order will not be filled;
3. Stop order: this order becomes a market order once a certain price (the "stop" price) is reached. It is commonly used to limit losses or protect profits;
4. Stop-limit order: an order that combines a stop order with a limit order. Once the stop price is reached, the order becomes a limit order instead of a market order;
5. Day order: an order that is valid only for the current trading day. If the order is not filled by the close of the market, it is canceled automatically;
6. Good 'til canceled (GTC): an order that remains active until it is either executed or canceled by the trader. Unlike a day order, which expires at the end of the trading session, GTC orders can stay open for weeks, months, or until filled.

The key is to understand what each order type can do for trader and how to align them with the overall strategy.

These orders allow traders to execute strategies based on their risk preferences, trading style, and market conditions. Each type of order provides different levels of control over price, execution, and timing.