Quick Reference Guide to Order Types

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FOR STOCK:

ENTRY - Stop-Limit
EXIT (Stop Loss) - Stop
PROFIT TARGET - Limit



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DURATION: Day Order
[unless it is a Stop-Loss order, which would be a GTC (Good 'Till Cancelled)]



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PLAN YOUR TRADE...TRADE YOUR PLAN!!!



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FOR OPTIONS:

ENTRY - Limit or Contingent (Market or Buffered Limit)
EXIT (Stop-Loss) - Stop
PROFIT TARGET - Limit



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In market vernacular and lingo, when you see the word "stop" then replace it in your mind with the word "trigger" because that, in essence, is what a "stop order" means in the market.

Also, when you see the word "limit" then replace it in your mind with "better than" because that is what a "limit order" means in the market.

A "market order" means that you will get the current market price when placing an order. These can often times be very disadvantageous when trying to get the best price available.

A "stop-limit order" is a combination of a "stop order" (otherwise known as a "trigger" order) and a "limit order" (otherwise known as a "better than" whatever price you are listing as the limit price). In essence, you will be creating a "window" where you are comfortable being filled. Inside of the two prices you list, the stock will be given to you (only if available); outside of the two prices you list, the stock will NOT be given to you. This is the best way of controlling your fill price when buying/shorting stocks.

NOTE OF INTEREST: all "stop orders" actually turn into "market orders" once the stop/trigger price has been reached.