Types of Orders Admitted
With respect to the stock exchange orders, there exist different types of proposals that are admitted during an open session. A stock exchange order is the instruction given by an investor to an intermediary for him to try to execute it at the stock exchange market. These instructions must be perfectly identified by clear and simple definitions. All the stock exchange orders must indicate:
- The securities object of the order
- The amount of securities to acquire or sell
- The way to execute the order
- The period of value: for one day, until determined date or until expiration.
Attending the Types of Orders Admitted:
Of market or “for best”. It consists of closing an operation at the best price offered the market at that moment. They are orders that are generally executed immediately; you buy or sell at the prices that appear on the screen at that moment. The investor asks its agent for the execution of an operation at the best exchange possible to get.
Limited order or with limits: A maximum price is indicated for buying and a minimum price for selling.
Of minimum execution: At the first negotiation the minimum amount of lots to be executed is indicated. The rest is done by unities of lots.
“At the opening”: It is accepted that the offer and demands be crossed at the opening price of the market, whatever it is, and the quantity covered by the market.
“On stop”: the order is limited to the price fixed by the operator or to an interval of quoted prices, and other minimum or maximum for the buying or selling. Its admission to the market is conditioned by the execution of an operation at the fixed price: to buy if it rises from or the sell if it falls from.
“With additional amounts”: the operator only shows part of the volume of the proposal, although among all in the market.
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