Special Instructions

The three types of orders can be supplemented by a series of instructions related to time. For example the “open instruction” that gives the order the character of “valid until it cancellation.” This instruction keeps the buying or selling order standing until it is executed or canceled by the client. This order then, defers from that called “order for the day” that can only be done effective during the same day that is issued.

There are other instructions that also supplement the three basic types of orders; these instructions are those of “at the best possible price; all or nothing; immediate execution and immediate execution or cancellation.”

Open sale
The most common is for investors to buy securities before selling them (this is called of long position or of long coverage). In other occasions, however, the investors sell securities that they do not possess and consequently have to buy them after to “cover” their open sale. This is called a short position or short coverage.

The investors sell in the open when they foresee a fall in prices. To sell in the open is, in essence, to reverse the terms of the beginning that is “to buy cheap for the to sell expensive”; it is true, but in this case you sell expensive (now, without giving the securities at this moment) for after buying cheap (later on, when you have to reimburse the loaned securities).