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Stock Trading Basics
Types of Stock Orders
By Frank Kneipher
May 21, 2007 - 6:40:12 PM

Once an investor has researched a stock and decided to purchase it, they must determine the type of order to place.


An order is an instruction to a stockbroker or dealer to buy, sell, deliver,

or receive securities or commodities. The order commits the issuer of the

order to the terms specified in the order.

Common Order Types

Round Lot . An order to buy or sell in multiples of 100 shares.
Odd Lot. An order to buy or sell that involves less than 100 shares.
Market Order. An order to buy or sell at the best price currently

 available.
Limit Order. An order to buy or sell when and if a security reaches a

specific price.
Good Til Cancelled (GTC) Order. An order to buy or sell at a specific

price until the investor cancels the order.
Scale Order. An order to buy or sell a security that specifies the total amount to be bought or sold at specified price variations.
Stop Order. An order to buy at a price above or sell at a price below the

current market. Stop buy orders are generally used to limit or protect

unrealized profits on a short sale. Stop sell orders are generally used to

protect unrealized profits or limit loss on a holding. A stop order becomes

a market order when the stock sells at or beyond the specified price and, thus, may not necessarily be executed at that price.

 

Immediate or Cancel Order (IOC)

A market or limit order that trades immediately and

automatically cancels any unfilled portion. IOC orders are

eligible for auto execution and residual sweeping of the

book in the Hybrid Market.  There are two types of IOC

orders: those that route to ITS away markets and those

that do not.

Technology is the single most important asset and the core enabler in our market.   The following are NYSE facts specific to the NYSE Trading Platform:

1.6 billion plus Average daily volume of shares with peak of 2.5 billion shares.

10,000 Voice/data circuits connected to the trading floor.

5,000 Flat display screens for specialists and brokers.

1,600 plus Broker booth positions on the trading floor.

3,000 Number of discreet systems in the data center.

99.9999 Percentage of NYSE trading systems uptime

100% Percentage of electronically delivered orders to the

trading floor.

7 seconds The time to fully execute a typical market order in the auction market, often with a better price than the quote.

300-400 The time to automatically milliseconds execute an order on the NYSE 10 miles Amount of cabling required to

match the capacity of the trading floor wireless network.

2 Two fully redundant data centers.

Frank Kneipher

FKPRINTS1@YAHOO.COM



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