Order
An order refers to an instruction given by an investor or trader to a broker or exchange to buy or sell a financial instrument, such as stocks, bonds, or options. Orders can be market orders, which are executed immediately at the current market price, or limit orders, which are executed only when the price reaches a specified level. Orders are the primary way traders execute their trading strategies in financial markets.
Example
A trader places a limit order to buy 100 shares of a stock at $50 per share, meaning the trade will only execute if the stock’s price falls to or below $50.
Key points
• An instruction to buy or sell a financial instrument on a broker’s platform or exchange.
• Can be a market order (immediate execution) or a limit order (conditional execution).
• Orders are the main method of executing trading strategies in the financial markets.
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