Your Order Please: A Guide to the Different Ways to Buy and Sell Securities

Once you've made up your mind about a stock, the rest is easy, right? Just call up your broker and say "buy" or "sell."

Unfortunately, it's not always that simple. There are multiple ways to give buy and sell instructions to a broker, and just as many ways to get burned if you mess up.

Here is a rundown of the most common types of orders used by most stock exchanges and brokers. Some brokers, though—especially the on-line variety—may not accept every type of order, so check ahead of making your transaction.

Day Orders vs. GTC Orders

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N Crawford from Missouri posted about 1 year ago:

SSR says it is always safer to employ limit orders. If you are buying, you have to set the limit price below the current market price. This means if the stock starts rising, your order will never be executed. Since your buy recommendations are based on stocks that you expect to rise in price, using limit buy orders seems questionable. I can envision using limit buy orders on many of the stocks you recommend with the result that none of them are ever purchased because they all go up in price and the order is never executed. Vice versa for limit sell orders. So my question is: why are you recommending limit orders?

Dave OBrien from Virginia posted 12 months ago:

Like the idea of adding/subtracting penny to expedite limit orders. TY

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