74. Replay: Demystifying Stock Order Types in Trading

This episode was first released on June 24, 2024. We’re replaying it for you for a reason! Think of it as a review of some of last year’s material before we get into all the investing topics we’re going to cover this year. 👩🏼‍🏫👩🏻‍🏫 We share our screen and actually show you how to place different order types at a brokerage firm - you can watch on Spotify or YouTube!

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There are so many different ways to buy and sell securities in your brokerage account. What does Bid and Ask mean? What is Stop and Limit Order? What are market orders? How many different Order Types are there and what is the difference? This is your ‘set it and forget it” overview of order types for trading securities through your brokerage firm.

Remember These Things:
Take taxable events into account (capital gains, losses, selling before holding for 1 year, etc.). Don’t try to time the market. This is education, not advice. 😉

 
Limit Order vs Market Order:

Limit Order guarantees price not execution. Market Order guarantees execution.

 
Trading Order Accronyms: 

FOK = Fill Or Kill

GTC = Good Till Canceled 

OTO = One Triggers Other

OTOCO = One Triggers Other Cancel Other

SPX  = S&P 500 Indice Symbol

FINRA has a good explanation of Order Types
 

Related Episodes:

We’ve already gone over Bid and Ask prices and how those market mechanics work in Episode 16 (on Dark Pools, PFOF, Market Makers). You might also like Episode 10 (how to read a stock quote) and Episode 14 (how to analyze a stock for beginners). 😉✨