There are a wide range of order types that investors are able to incorporate in their trading. Below is a list of orders most commonly used.
*Common order types with example as illustration.
| Order Types | Definition |
| All or None* | An order which will only be executed in its entire amount as placed. Partial fill is not allowed. It will remain in the order book otherwise. |
| At-the-market | An order to buy or sell a security or futures contract at whatever price is obtainable when the order reaches the trading facility. |
| Buy limit | An order to execute buy transaction at a specified price (the limit) or lower. |
| Day | A buy or sell order at a particular price level that will expire automatically at the end of the trading day on which it is entered. |
| Fill-and-Kill (FAK)* | A FAK order is immediately filled in whole or in part at the specified price. Any remaining quantity is eliminated. |
| Fill-or-Kill (FOK)* | A FOK order is cancelled if not immediately filled for the total quantity at the specified price or better. |
| Good Till Cancelled (GTC) | A buy or sell order which remains open until it is filled or cancelled. |
| Good Till Date | An order that remains in force through the specified trade date unless executed or cancelled before the specified trade date. |
| Good Till Day | An order that remains in force through the trade day unless executed or cancelled before end of the trading day. |
| Iceberg | Such order indicates that the total quantity will not be displayed to the market, but only per increments as indicated. Difference between order quantity and displayed quantity is hidden. |
| If Done* | If Done order consists of two separate orders where the second order becomes active only if and when the first order has been executed. The first order, a Limit or a Stop, is created as active, while the second, a Limit, a Stop or even an OCO is set to a dormant status. When the price is touched for the first order, it is executed and the second order becomes active. |
| Limit | An order to execute a transaction at a specified price (the limit) or better. A limit order to buy would be at the limit or lower, and a limit order to sell would be at the limit or higher. |
| Loop | It is a perpetual or repeating order placed in anticipation of a cyclical movement in the market. It is a pair of matching orders where the first leg is active and the second dormant. When the desired price is reached for the active order, it is executed, the dormant order becomes active, and a new order (a copy of the one just executed) is created in a dormant state. This process repeats until the order is explicitly cancelled. For example, if a trader expects the rate of an instrument to fluctuate between two levels (range trading), a Loop order placed just inside the limits of the fluctuations will produce repeated good results. |
| Market-if-Touched (MIT) | An order that automatically becomes a market order when the specified price is reached. A sell MIT is placed above the market; a buy MIT is placed below the market. |
| Market-on-Close | An order to buy or sell submitted at any time within a trading session, but only executed at the end of the trading session at a price within the closing range of prices. |
| Market-on-Open | An order to buy or sell entered before an opening, to be executed immediately upon the open of the trading session at a price within the opening range of prices. |
| Market | An order placed at any time during the trading session to immediately execute the entire order at the best available offer price (for buy orders) or bid price (for sell orders). |
| One Cancels the Other (OCO)* | A designation for two linked orders, typically (but not always) a Limit order and a Stop order, that both work until one order is filled, at which time the other order is automatically cancelled. |
| Resting | An order away from the market, waiting to be executed. |
| Scale* | Instructions to sell or buy part of the order at each price as the market rises (scale up) or declines (scale down) respectively. The order may give precise instructions on how much is to be bought or sold at a given price, or some discretion may be left with the broker. |
| Sell limit | An order to execute a sell transaction at a specified price (the limit) or higher. |
| Spread | An order that initiates the simultaneous purchase and sale of related futures or options contracts. Complex strategies using multiple contracts (or legs) are employed. |
| Stop close only | A stop order that is executed only if the stop price is triggered during the closing range of the trading session. |
| Stop | An order that becomes a market order when a particular price level is reached. A sell stop is placed below the market; a buy stop is placed above the market. Sometimes referred to as Stop Loss Order. |
| Stop limit | A Stop Limit order is triggered when the designated price is traded on the market. The order then enters the order book as a Limit order with the customer's specified limit price. The order is executed at all price levels between the trigger price and the limit price. A buy Stop Limit order must have a trigger price greater than the last traded price for the instrument. A sell Stop Limit order must have a trigger price lower than the last traded price. |
| Trailing Stop* | The trailing stop order is designed to trail the instrument's market price. For example, a trailing stop order on a long position would rise if the market price rises, but would remain constant when the market begins to fall. The order would then be filled once the market price breaches the price level associated with the trailing stop. |
Illustrations
Below examples are based on the scenario that market price for EURUSD is at 1.4950/52 (liquidity EUR 4mio at each side at this best price).
All or None
Place an order to Sell EURUSD 5,000,000 @ 1.4950 GTC
Scenario:
As the current liquidity is EUR 4,000,000, the order will not be done and will remain active until the current liquidity increases to EUR 5,000,000 or above.
Fill and Kill (FAK)
To Sell EURUSD 5,000,000 @ 1.4950
Scenario:
EURUSD 4,000,000 will be executed @ 1.4950 and the remaining EURUSD 1,000,000 will be cancelled. No pending order.
Fill or Kill (FOK)
To Sell EURUSD 5,000,000 @ 1.4950
Scenario:
Order is immediately cancelled upon placement as the current liquidity to buy EURUSD @ 1.4950 is EUR 4,000,000 which is less than the desired amount to sell.
If Done
Place an order to (1) buy EURUSD 500,000 @ 1.4900 GTC and If Done (2) Sell EURUSD 500,000 @ 1.5000 GTC
Scenario 1:
EURUSD goes down to 1.4900 or below and then order (1) gets executed. Order (2) will then become active.
Scenario 2:
EURUSD goes down but does not touch order (1) level and goes back up. As nothing is done on this If Done order, therefore only order (1) will remain active until cancelled or scenario 1 happens.
Scenario 3:
EURUSD goes up and touches order (2) level and beyond. Nothing will happen to order (2) as it will remain dormant until order (1) gets triggered first. Nothing is done on this If Done order and will remain active until cancelled or scenario 1 happens.
One Cancels the Other (OCO)
Place an order to (1) buy EURUSD 500,000 @ 1.4900 GTC OCO (2) buy stop EURUSD 500,000 @ 1.4980 GTC
Scenario 1:
EURUSD goes down to 1.4900 or below and order (1) gets executed, order (2) will be cancelled automatically.
Scenario 2:
EURUSD goes up to 1.4980 or above and order (2) gets executed, order (1) will be cancelled automatically.
Scenario 3:
EURUSD range bound between 1.4901 to 1.4979. OCO order will remain in force till cancelled or either scenario 1 or 2 happens.
Scale
To buy EURUSD 1,000,000 in lots of EURUSD 200,000 starting @ 1.4940 and then @ every 10 pips interval. This translates to 5 orders as below:
- To buy EURUSD 200,000 @ 1.4940
- To buy EURUSD 200,000 @ 1.4930
- To buy EURUSD 200,000 @ 1.4920
- To buy EURUSD 200,000 @ 1.4910
- To buy EURUSD 200,000 @ 1.4900
Scenario 1:
EURUSD goes down but does not touch order (1) level and goes back up. Nothing is done for this entire scale order and will remain active until cancelled or price is triggered.
Scenario 2:
EURUSD goes down to 1.4940 and below but does not touch order (2) level and goes back up. Order (1) will be executed only. Nothing is done for orders (2), (3), (4) and (5) and they will remain active until cancelled or price is triggered.
Scenario 3:
EURUSD goes down to 1.4930 and below but does not touch order (3) level and goes back up. Orders (1) and (2) will be executed. Nothing is done for orders (3), (4) and (5) and they will remain active until cancelled or price is triggered.
Scenario 4:
EURUSD goes down to 1.4920 and below but does not touch order (4) level and goes back up. Orders (1), (2) and (3) will be executed. Nothing is done for orders (4) and (5) and they will remain active until cancelled or price is triggered.
Scenario 5:
EURUSD goes down to 1.4910 and below but does not touch order (5) level and goes back up. Orders (1), (2), (3) and (4) will be executed. Nothing is done for order (5) and it will remain active until cancelled or price is triggered.
Scenario 6:
EURUSD goes down to 1.4900 and below. All 5 orders will be executed.
Trailing Stop
