Order Types Explained

An order that must be filled completely, although not necessarily immediately.

Example: A seller refuses partial executions of a 20,000-share order.

All-or-None Order is an order that must be filled completely, although not necessarily immediately; the result of the trading process depends on the order bookA record of outstanding buy and sell orders arranged by price and often time priority., spread, depth, volatilityThe degree and frequency of price or return fluctuations., venue rules and priority among competing instructions.

For example, a seller refuses partial executions of a 20,000-share order.

The practical test for All-or-None Order is whether the order instruction produces the intended exposure at an acceptable all-in execution cost. Also compare At-the-Open Order, defined here as an instruction intended for execution at the market's opening price.

An instruction intended for execution at or near the official closing price.

Example: An index fundA fund designed to track the holdings and performance of a stated market index. uses an at-the-close order on a rebalancingRestoring a portfolio toward its target weights by buying or selling assets. day.

At-the-Close Order is an instruction intended for execution at or near the official closing price; the result of the trading process depends on the order book, spread, depth, volatility, venue rules and priority among competing instructions.

For example, an index fund uses an at-the-close order on a rebalancing day.

Before using At-the-Close Order, understand the venue's matching rules, trigger conditions, trading hours and treatment during halts or fast markets. Also compare Iceberg Order, defined here as a large order that displays only a small visible portion at a time.

An instruction intended for execution at the market's opening price.

Example: The investorA person or organisation that commits capital with the expectation of a financial return. enters an at-the-open order before the opening auctionA pre-session process that matches orders at a single opening price..

At-the-Open Order is an instruction intended for execution at the market's opening price; distinguish the quoted market from executable liquidityThe ease and speed with which an investment can be converted into cash without a major price concession.. A displayed price may cover only a small quantity.

For example, the investor enters an at-the-open order before the opening auction.

The practical test for At-the-Open Order is whether the order instruction produces the intended exposure at an acceptable all-in execution cost. Also compare At-the-Close Order, defined here as an instruction intended for execution at or near the official closing price.

An order that expires if it is not executed by the end of the trading day.

Example: The unfilled buy order is cancelled at market close.

Day Order is an order that expires if it is not executed by the end of the trading day; the trading process belongs to market microstructure: it explains the path between an investor's decision and the price actually obtained.

The unfilled buy order is cancelled at market close.

Evaluate Day Order from execution records: decision price, submitted order, fills, average price, fees, slippageThe difference between the expected trade price and the actual execution price. and any unexecuted balance; fast execution usually requires accepting less control over price.

An order that must be executed immediately in full or cancelled entirely.

Example: The investor wants all 100,000 units at once or no trade.

Fill-or-Kill Order is an order that must be executed immediately in full or cancelled entirely; the trading process affects how an order reaches the market, interacts with available liquidity and becomes an executed trade or displayed price.

The investor wants all 100,000 units at once or no trade.

For Fill-or-Kill Order, inspect the bid, offer, depth, recent volume, order conditions, fees and settlement cycle; use a limit where price control matters. Liquidity visible in normal markets can disappear during stress.

An order that remains active until executed or cancelled, subject to broker or exchange limits.

Example: The investor leaves a limit order open for several weeks.

Good-Till-Cancelled Order is an order that remains active until executed or cancelled, subject to broker or exchange limits; the trading process affects how an order reaches the market, interacts with available liquidity and becomes an executed trade or displayed price.

The investor leaves a limit order open for several weeks.

For Good-Till-Cancelled Order, inspect the bid, offer, depth, recent volume, order conditions, fees and settlement cycle; use a limit where price control matters. Liquidity visible in normal markets can disappear during stress.

A large order that displays only a small visible portion at a time.

Example: A 500,000-share sell order shows only 10,000 shares in the book.

Iceberg Order is a large order that displays only a small visible portion at a time; the trading process affects how an order reaches the market, interacts with available liquidity and becomes an executed trade or displayed price.

For example, a 500,000-share sell order shows only 10,000 shares in the book.

For Iceberg Order, inspect the bid, offer, depth, recent volume, order conditions, fees and settlement cycle; use a limit where price control matters. Also compare Pegged Order, defined here as an order whose price automatically follows a reference such as the best bid, ask, or midpoint.

An order requiring immediate execution of all available quantity, with any remainder cancelled.

Example: Only 3,000 of 5,000 shares fill immediately and the rest is cancelled.

Immediate-or-Cancel Order is an order requiring immediate execution of all available quantity, with any remainder cancelled; the trading process belongs to market microstructure: it explains the path between an investor's decision and the price actually obtained.

Only 3,000 of 5,000 shares fill immediately and the rest is cancelled.

Evaluate Immediate-or-Cancel Order from execution records: decision price, submitted order, fills, average price, fees, slippage and any unexecuted balance; historical volume does not guaranteeA contractual promise by another party to meet an obligation if the primary debtor does not. liquidity for a specific trade size.

An instruction to trade only at a specified price or better.

Example: A buy limit at ₦15 will not execute above ₦15.

Limit Order is an instruction to trade only at a specified price or better; the result of the trading process depends on the order book, spread, depth, volatility, venue rules and priority among competing instructions.

For example, a buy limit at ₦15 will not execute above ₦15.

The practical test for Limit Order is whether the order instruction produces the intended exposure at an acceptable all-in execution cost. Also compare Stop Order, defined here as an order that becomes active after a specified trigger price is reached.

An instruction to buy or sell immediately at the best available prices.

Example: A market order may fill quickly but at several prices in a thin market.

Market Order is an instruction to buy or sell immediately at the best available prices; the trading process belongs to market microstructure: it explains the path between an investor's decision and the price actually obtained.

A market order may fill quickly but at several prices in a thin market.

Before using Market Order, understand the venue's matching rules, trigger conditions, trading hours and treatment during halts or fast markets; historical volume does not guarantee liquidity for a specific trade size. Also compare Limit Order, defined here as an instruction to trade only at a specified price or better.

An order whose price automatically follows a reference such as the best bid, ask, or midpoint.

Example: The buy order remains one tick below the best ask.

Pegged Order is an order whose price automatically follows a reference such as the best bid, ask, or midpoint; the trading process affects how an order reaches the market, interacts with available liquidity and becomes an executed trade or displayed price.

The buy order remains one tick below the best ask.

For Pegged Order, inspect the bid, offer, depth, recent volume, order conditions, fees and settlement cycle; use a limit where price control matters. Historical volume does not guarantee liquidity for a specific trade size.

An order that becomes a limit order after a stop price is reached.

Example: A stop at ₦18 and limit at ₦17.50 may remain unfilled below ₦17.50.

Stop-Limit Order is an order that becomes a limit order after a stop price is reached; the trading process belongs to market microstructure: it explains the path between an investor's decision and the price actually obtained.

A stop at ₦18 and limit at ₦17.50 may remain unfilled below ₦17.50.

Before using Stop-Limit Order, understand the venue's matching rules, trigger conditions, trading hours and treatment during halts or fast markets; fast execution usually requires accepting less control over price.

An order that becomes active after a specified trigger price is reached.

Example: A sell stop activates when the share falls to ₦18.

Stop Order is an order that becomes active after a specified trigger price is reached; the trading process affects how an order reaches the market, interacts with available liquidity and becomes an executed trade or displayed price.

For example, a sell stop activates when the share falls to ₦18.

The practical test for Stop Order is whether the order instruction produces the intended exposure at an acceptable all-in execution cost; liquidity visible in normal markets can disappear during stress.

A stop order whose trigger follows a favourable price move by a fixed amount or percentage.

Example: A 10% trailing stop rises as the share reaches new highs.

Trailing Stop is a stop order whose trigger follows a favourable price move by a fixed amount or percentage; the trading process belongs to market microstructure: it explains the path between an investor's decision and the price actually obtained.

For example, a 10% trailing stop rises as the share reaches new highs.

Before using Trailing Stop, understand the venue's matching rules, trigger conditions, trading hours and treatment during halts or fast markets; an order can be valid and still remain unfilled.