Order Types Cheat Sheet
Basic Order Types
These are the three orders every investor uses. Master these first.
| Order Type | How It Works | Pros | Cons |
|---|---|---|---|
| Market Order | Buys/sells immediately at the best available price | Guaranteed execution; fastest fill | No price control; can get bad fills in volatile markets |
| Limit Order | Buys/sells only at your specified price or better | Price control; no slippage | May not execute if price never reaches your limit |
| Stop Order (Stop-Loss) | Becomes a market order once the stop price is triggered | Protects against large losses automatically | Can trigger during flash crashes; becomes market order (slippage risk) |
Advanced Order Types
| Order Type | How It Works | Best For |
|---|---|---|
| Stop-Limit Order | Triggers a limit order (not market) when stop price is hit | Controlling both trigger and execution price |
| Trailing Stop | Stop price trails the market by a fixed amount or percentage | Locking in profits while letting winners run |
| Trailing Stop-Limit | Trailing stop that triggers a limit order instead of market | Same as trailing stop but with price control |
| Fill or Kill (FOK) | Must execute entire order immediately or cancel completely | Large block orders where partial fills are unacceptable |
| Immediate or Cancel (IOC) | Fills as much as possible immediately; cancels the rest | Getting the best available liquidity right now |
| All or None (AON) | Only executes if the entire order can be filled (not necessarily immediately) | Avoiding partial fills on illiquid stocks |
| Good Till Canceled (GTC) | Stays active until filled or manually canceled (usually 60–90 days max) | Setting up trades at target prices while away |
| Day Order | Expires at the end of the trading session if unfilled | Default order duration — most common |
Conditional & Bracket Orders
| Order Type | How It Works | Use Case |
|---|---|---|
| OCO (One Cancels Other) | Two orders linked — when one fills, the other cancels automatically | Setting both a profit target and stop-loss simultaneously |
| Bracket Order | Entry order + profit target + stop-loss, all submitted together | Full trade management in one submission |
| OTO (One Triggers Other) | First order triggers a second order when filled | Entering a position then automatically placing a stop-loss |
| MOO (Market on Open) | Executes at the opening auction price | Capturing overnight gaps or reacting to pre-market news |
| MOC (Market on Close) | Executes at the closing auction price | Institutional rebalancing, index tracking |
| LOO (Limit on Open) | Limit order only valid during the opening auction | Getting a specific price at the open or nothing |
| LOC (Limit on Close) | Limit order only valid during the closing auction | Getting a specific closing price or nothing |
Order Type Decision Guide
| Your Goal | Best Order Type | Why |
|---|---|---|
| Get in/out immediately | Market order | Guaranteed fill, accept current price |
| Buy at a specific price | Limit order | No slippage, patience required |
| Protect against losses | Stop-loss | Automatic exit when things go wrong |
| Lock profits while riding trend | Trailing stop | Adjusts dynamically as price moves in your favor |
| Set profit target AND stop-loss | Bracket order / OCO | Complete trade plan in one setup |
| Avoid partial fills | All or None (AON) | Full execution or nothing |
Key Takeaways
- Market orders guarantee execution; limit orders guarantee price — you can’t always have both
- Stop-loss orders protect your downside but become market orders once triggered
- Trailing stops dynamically lock in profits as a trade moves in your favor
- Bracket orders (OCO) let you set both profit targets and stop-losses simultaneously
- Default to limit orders for better price control, especially in illiquid stocks
Frequently Asked Questions
What is the difference between a stop order and a stop-limit order?
A stop order becomes a market order when triggered — guaranteed to execute but at an uncertain price. A stop-limit order becomes a limit order when triggered — you control the price but risk the order not filling if the market moves too fast.
When should I use a market order instead of a limit order?
Use market orders when speed matters more than price — for example, closing a losing position quickly or entering a fast-moving breakout. For highly liquid, large-cap stocks, market orders are usually fine since the spread is tight.
How far should I set my trailing stop?
It depends on the stock’s volatility. A common approach is to use 1.5–3x the ATR (Average True Range). Too tight and normal fluctuations will stop you out; too wide and you’ll give back too much profit before exiting.
Do order types work the same for options as for stocks?
Most order types work the same way, but options have wider bid-ask spreads and lower liquidity. Limit orders are even more important for options. Market orders on options can result in very poor fills.
What happens to open orders after hours or overnight?
Day orders cancel at session close. GTC orders remain active for the next session. Stop and limit orders typically don’t trigger during after-hours trading unless your broker specifically allows extended-hours order execution.