Definition
An order type tells a trading system what execution behavior a trader requests. A market order seeks available liquidity promptly, while a limit order specifies the highest acceptable purchase price or lowest acceptable sale price. Conditional orders introduce an event that must occur before another order is activated.
How It Works
Order settings may combine several instructions. For example, a stop-limit sell order becomes a limit order after its trigger condition is met; triggering alone does not complete the sale. Time-in-force settings control how long an order remains valid, while instructions such as post-only affect whether it may take liquidity.
Key Considerations
Available types and compatible settings vary by market and platform. No order type guarantees both a particular price and execution. A market order can experience slippage, a limit order can remain unfilled, and a triggered order can be rejected if account requirements are not met. Check the trigger reference and applicable execution rules.