Cons:
The order might never get filled if the conditions aren't met.
10. Immediate or Cancel (IOC)
What it is: An IOC order is an order to buy or sell immediately, but any portion of the order that cannot be filled immediately will be canceled.
When to use it: Use this when you want to quickly fill as much of your order as possible without waiting.
Pros:
Fast execution for part of the order.
Cons:
Might leave part of your order unfilled.
Choosing the Right Order
The order you choose depends on your trading strategy, goals, and the market conditions you're dealing with. Here's a quick guide to choosing:
Quick trade, no concern for price: Market order.
Control over price, willing to wait: Limit order.
Protect against loss: Stop order or stop-limit order.
Protect profits as price moves in your favor: Trailing stop.
Don’t want partial fills: Fill-or5. Trailing Stop Order
What it is: A trailing stop is a type of stop order that moves with the market price. It’s set at a percentage or dollar amount away from the highest price reached after the order is placed.
When to use it: Use it when you want to lock in profits as the market moves in your favor, while still protecting against downside risk.
Pros:
Automatically adjusts as the market price moves in your favor.
Cons:
It may get triggered too early in volatile conditions.
6. Fill or Kill (FOK)
What it is: A fill-or-kill order is a type of limit order that must be filled completely and immediately, or not at all.
When to use it: When you want to get in or out of a position in one go, without partial fills.
Pros:
Guarantees either a full fill or no fill at all.
Cons:
The order might not be filled at all if the market conditions don’t meet the requirements.
7. Good ‘Til Canceled (GTC)
What it is: A GTC order remains active until it is either executed or canceled by the trader, which could be days, weeks, or even longer.
When to use it: Use this if you want to set a price and forget about it until the order is filled or canceled.
Pros:
Convenience—doesn’t need to be renewed everyday