When placing an order to buy or sell your stocks, you may have noticed there are a few options you can choose from – market order, limit order or a stop order. Each order type has its advantages, and can be used in different situations, depending on what you are trying to achieve.
Understanding what these order types mean, and how to execute them, will help you manage your risk and return.
The most basic, and common, order type is the market order. In this episode we explain what it means and how it’s executed. You would have heard us talk about the ‘stop loss’ and how it can be used to lock in your gains or limit your losses. If you’ve always wanted to know what we’re talking about, then this is the episode for you.
This is the last episode in our lesson series for Australia’s Next Top Trader. We’ll continue to bring you market updates and stock tips each Monday for the remainder of the comp, and will return to the regular Equity Mates content!