4 Stock Order Tips For Trading Success

4 Stock Order Tips for Trading Success

These are some other order types and distinctions you might encounter and should at least know about when it comes to trading stocks:

All or None (AON)

An ‘all or none’ (AON) is a specification you can place on your buy and sell order. It directs the broker to either fulfill the order to the letter, or to not fill the order at all. For instance, if you want to buy or sell 100 shares and not all of them are available, the order will be canceled.

With an AON order, you give instructions about how the order will be filled, which has an effect on how long the order is active.

Whether or not an AON is fulfilled depends on various factors. For instance, a stock that has a lot of movement and a lot of shares is often less likely provide any problems.

However, if you’re placing a bigger or more substantial order, it might be harder to fulfill because you’re taking up a bigger amount of the shares traded during the trading day.

Good ‘Til Canceled (GTC)

As casual as it may sound, yes, this is an official order type.

A ‘good ‘til canceled’ (GTC) order is when you place an order to buy or sell a stock that stays active until the order is filled or you cancel it.

Don’t take the name too literally, though. They actually don’t remain active or unclosed forever.

Usually, the order will have an expiration date 30 to 90 days after it is placed. This keeps you as the investor from being surprised by a charge after you thought it was over and done with.

The idea behind GTC orders is that if you’re not able to constantly monitor stock prices, you can place your order, set it at a specific price point, and keep it open for a few weeks.

This means that you have a lot of freedom. If the price reaches your desired point within a finite period, the trade will go on.

It’s also possible to place GTC orders as specifications on stop orders. In those cases, the prices will be below or above the market prices, so that you can limit losses and maximize profits.

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