End of post for Types of Market Orders !

Congratulations! You’ve reached the end of the stock trading tutorial postings. You now have the basic building blocks to help you make better decisions for your portfolio. This handy summary will serve as a cheat sheet in the future:

· Market orders guarantee execution but not price.

· Limit orders guarantee price but not execution.

· All-or-none orders are only executed if the broker has enough shares, as a block, to fill your order in a single transaction.

· A stop order automatically converts to a market order when a predetermined price (the stop price) is reached. A stop loss order, on the other hand, automatically converts to a limit order when the stop price is reached.

· When you sell short, your potential losses are theoretically unlimited.

· Day orders expire at the end of a trading day. Good-till-cancelled orders stay on the books until they are completely filled, cancelled, or sixty calendar days have passed.

· Due to the lower level of liquidity, extended hours orders are subject to far greater volatility than those placed during the regular market day.

· Trailing stop orders can be used to lock-in profits while potentially benefiting from the increased rise in stock price.

· Bracketed orders are the same as trailing stop orders, except that they require an upper limit trigger price which, when reached, results in the stock being sold.