Types of orders you can place
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 Order
This 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 Order
This 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 Order
There 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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