 If you're not familiar with the expressions traders use, here's
a quick overview that will help you convey your instructions
precisely and accurately to your TD Waterhouse
Account Representative, or when using one of our Electronic
Brokerage Services.
Market OrderThis is an order to buy or sell a security
at the current available price. All orders that don't have a specific price are usually
considered Market Orders, which means paying the
best "ask" when buying, or accepting the
best "bid" when selling. Market Orders are often the best way to ensure your order is
filled within seconds of entering your order. Please note that
because the bid/ask price can change at any time, your order's fill
price may be different than the quote received.
Limit OrderThis is an order in which you set the
maximum price you're willing to pay as a buyer, or the minimum
price you're willing to accept as a seller. Except under special
circumstances, TD Waterhouse
may not accept limit Orders too far off the market price.
Remember, at any time prior to the execution of your
trade you can cancel or change the price on your Limit
Order or change it to a Market Order. Because of their price
stipulations, not all Limit Orders get filled. Types of Limit Orders:Day Order
- valid only for the day on which the order is entered.Open Order, Good 'Till
Cancelled (GTC) Order
- usually has a specific price and remains valid until the order is
executed or cancelled. The order can remain open for a maximum of
30 calendar days and is automatically cancelled without notice if
not filled within that time. You should always keep a record of
your GTC orders.
Stop OrderThere are two kinds of stop orders:Stop-loss Orders
on Canadian Exchanges, NYSE and AMEX - An order that
instantaneously becomes a market sell order when one board lot
trades at or below the price specified in the stop-loss order
(trigger price). The "trigger" price of your
stop-loss order must be below the current bid.Stop-buy Orders
on Canadian Exchanges, NYSE and AMEX - An order used primarily to
cover a short sale or to buy in rising market. It is the opposite
to a stop loss in that the order instantaneously becomes a market
buy order when one board lot trades at or above the price specified
in the order (trigger price). A stop-buy order must be placed above
the current ask.
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