Market GraphsOnline trading involves knowing the very basics of trading and what to expect from it. This includes learning about the different market orders that one may encounter on the online trading "floor". Here are some types that online traders should know about and understand.

Types of Orders

Online traders may encounter different types of orders when trading, depending on what and how one would want the transaction being done. Online traders need to be specific on how they would want a certain transaction to proceed. Here are some of the order types that one would choose from when placing an equity order online.

Market Order -this is the type of order that should be executed immediately at the best available price. Since they generally require the least work and effort from the broker, they are considered as the cheapest trade to place online.

Stop Order– this is a type of market order that is executed once a security reaches a specified level. This type of market order cannot guarantee the exact price but can be a good means to protect against steep losses.

Limit Order– a type of order to transact at a specified price. It guarantees the price in which a security is being bought or sold. A limit order is considered as more expensive to place than a typical market order.

Day Order-this is a type of order that expires at the end of the business day if it has not been filled until then.

AON or All or None– this is usually an addition to a limit order that states buying or selling a security if the broker can place the entire order and not just a part of it.

GTC or Good Till Cancelled– this type of order for buying or selling a security remains in effect either until such time that a customer may cancel it or a broker is able to execute it.