Order Types

Market Order

• Execute IMMEDIATELY at best available price
• Guaranteed execution, NOT guaranteed price
• Use when speed is more important than price

Limit Order

• Buy limit: execute at limit price OR LOWER (better)
• Sell limit: execute at limit price OR HIGHER (better)
• Price is guaranteed, execution is NOT
• "Or better" — you get your price or a better one

Stop Order (Stop-Loss)

• Becomes a MARKET order when the stop price is reached
• Buy stop: placed ABOVE current market price (triggered when price rises to stop)
• Sell stop: placed BELOW current market price (triggered when price falls to stop)
• NOT guaranteed price — once triggered, it's a market order
• Used to limit losses or protect profits

Stop-Limit Order

• Becomes a LIMIT order when stop price is reached
• Has BOTH a stop price (trigger) and a limit price
• Neither execution NOR price is guaranteed
• Risk: may NOT execute if price gaps past the limit

Day vs GTC Orders

• Day order: expires at end of trading day if not filled (default)
• GTC (Good-Til-Canceled): stays open until filled or canceled (max ~60-90 days at most firms)

Settlement Dates

• Stocks, ETFs, corporate bonds, munis: T+1 (trade date + 1 business day)
• Government securities, options: T+1
• Cash/same-day settlement: trade date (T+0) — available for some government securities