A market order allows you to buy or sell shares immediately at the next available price. Available in most trading platforms designed for active traders, a bracket order will immediately place an OCO “take profit” and a stop order once a position is opened. But with a stop-limit order, you can also put a limit price on it. than the current price, then you might want to enter a sell limit order. Watch this short video: Content intended for educational/informational purposes only. Learn about OCOs, stop limits, and other advanced order types. If not, your order will expire after 10 seconds. Characteristics and Risks of Standardized Options, Advanced stock orders are designed for special trading circumstances that require extra specifications, Advanced order types can be useful tools for fine-tuning your order entries and exits. If a stock is trading at $25, and you want to buy at $27.50, then a limit order might immediately trigger a fill at $25 because that price is lower (hence “better”) than $27.50. Or maybe volume is on the thin side and you don’t want to move the market. Here’s an overview of the basic stock order types, their variations, and the different situations in which each one might come in handy. TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. By doing this, your order can get triggered at the lower (specified) price while preventing any orders from being triggered beyond your price limit. Essentially, the IOC order says: “Give me as much of my order as possible within this specific time frame (usually a few seconds) and cancel all unfilled orders once that time has passed.” You can specify the time in force for this type of order. If the stock’s price reaches $52, your position will close out at a profit and your sell stop will immediately be canceled, removing the risk of inadvertently opening a short position should the stock decline to trade again at $36. The Stop price triggers and "creates" the Limit order when the Stop price is hit. Image source: the thinkorswim® platform from TD Ameritrade. FIGURE 1: BRACKET ORDERS. Please read Characteristics and Risks of Standardized Options before investing in options. The order contains two inputs: (1) activation – the price where the limit order is activated and (2) price – which is the limit price where the order will be executed. responsible for the content and offerings on its website. Suppose you want to buy 5,000 shares of stock, but you don’t want to get filled at a wide range of prices. The stop order (sometimes called a “stop-loss” order) allows you to enter or exit a position once it reaches a specific price level. Includes orders with a size greater than the available shares displayed at the NBBO at time of order routing. When one order fills, the other order is immediately cancelled. After you’ve submitted the limit order you can go to the “Order Status” page to view its status. The limit order essentially says, “I want to buy or sell a stock at a specific price or better.” (You can also use a limit order to initiate or close out a position.) You're describing either a "stop-loss" or "stop-limit" order. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. 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