Enter Stock Orders Like a Pro – Learn the Terminology


The Small Investor

River2If you want to trade like a pro, you need to learn the different types of orders when buying or selling a stock.  Believe it or not, there is a lot of different ways to buy or sell a stock.  Each has its use.  Here is a review of the different types of orders:

Buy – An order to buy a security.

Sell – An order to sell a security.

Market Order – An order to buy or sell a security at the current market price.  Because the market price includes a Bid price (the price someone is willing to pay for a security) and an Ask price (the price at which someone is willing to sell), a market order to buy will pay the ask price, and an order to sell will sell at the bid price.  The difference between the Bid and the Ask is called the Spread

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