Order Definition – What is Order in Trading? | CFI

order

An order or trade order is a client’s instruction to their brokerage firm to buy or sell a financial asset on their behalf. Orders are usually placed through an online [trading platform] such as CFI’s [MetaTrader 5] trading platform.

 

The two major types of orders that every investor should familiarise themselves with are the market order and the limit order.

 

A market order is a request a trader sends to their broker to instruct them to execute a trade at that exact moment and the best possible price. Market orders are usually executed in seconds or even milliseconds, provided there is a liquid market at the given moment the order has been placed. When a market order has been completed, it is known as a ‘filled order’.

 

Limit orders

 

A limit order is another order type traders must be familiar with before starting to trade on a live account. This type of order is also referred to as a pending order which allows traders to buy and sell financial assets at a fixed price in the future. For example, if you decide to buy gold at $1,700, you could enter a limit order for this amount. This means that you would not pay more than $1,700 for that particular asset. Bear in mind, that it is still possible for you to buy the asset for less than $1,700 if you wish to do so.

 

Digging deeper there are four types of limit orders:

 

  • Buy limit: an order sent from a trader to their broker to purchase an asset below the current price
  • Sell limit: an order sent from a trader to their broker to sell an asset above the current price
  • Buy stop: an order sent from a trader to their broker to buy an asset at a price above the current market price
  • Sell stop: an order sent from a trader to their broker to sell an asset at a price below the current market price

 

Key takeaways

 

  • An order is a request from a trader to a broker to buy or sell an asset on behalf of the trader
  • Orders include market orders which are executed at market price or pending orders
Credit Financier Invest (Mauritius) Ltd is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
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Important Disclaimer:


We would like to remind that while we endeavour to provide best possible services, CFI provides execution only services and any information, reports, opinions, commentary or other materials he receives from CFI directly or from its employees or through any analytical tools provided to him or third party research provided to him from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions. The Client commits to make his own research and from external sources as well to make any investment. The Client accepts that CFI will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of any report provided should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.


Forex and CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financier Invest (Mauritius) Ltd provides general information that does not take into account your objectives, financial situation or needs. The content of this website must not be interpreted as personal advice. Please ensure that you understand the risks involved and seek independent advice if necessary.

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