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Education Gal's Blog

I will talk about general market education, specific help for Scottrade's platform and other fun, interesting topics. This is a great blog for newbie's who want to learn more about Scottrade's platforms.

Using Different Order Types

Order types seem to be a continual hot topic among traders.  How does this order type work? What type of order do you use?  How can I get the fill I want?  Every type of order from market to advanced orders have their own intricacies and understanding how each order type works is the first step in utilizing different order types properly. 

First, let me remind everyone that you BUY at the ASK and SELL at the BID.  One more time...you BUY at the ASK.  You SELL at the BID.  This is one of those details you don't want to forget!

For example:  Stock ABC last traded at $13.51. The current BID is $13.49.  The current ASK is $13.50.  If you enter a market order to BUY the stock at market, you would get filled at $13.50.  However, if you entered a market order to SELL the stock at market,you would get filled at $13.50. 

We created a great tutorial that goes over every type of order - market, limit, stop, stop limit, trailing stop, conditional, one cancels other and one cancels all.  In the tutorial, each order type is reviewed and then we show you how to place that order on the platform that you select (either the trading web site, Scottrader, or ScottradeELITE).  View the Order Type Tutorial.

Once you master the different types of orders, you can take even greater control over your account and maximize opportunities that might occur in the future!

Click here to read more about order types in the Knoweldge Center.


Posted by Education Gal on Sep 25, 2009 3:00 PM CDT

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