Lesson Basic order types and durations

Order types

Understand the different basic order types available at Questrade.

When you send an order to buy or sell a security (Stock, ETF, or Option), you’re able to choose from different order types. The type of order you use will determine how it’s sent to the exchange, whether there’s a specific price, and if you have any special conditions. Every order consists of 2 parts: the type, and the duration.

At Questrade, we offer up to 8 different order types depending on the platform you trade with.

With QuestMobile, and Questrade Trading you can choose from either a Market order or a Limit order.

Market order

A market order is the simplest of all order types. It allows you to buy or sell securities at the best available price in the market at the moment your order is sent for execution. During normal trading hours, market orders are usually filled (executed) almost instantly.

Market orders placed outside of trading hours are queued, and will be sent to the exchange at market open the next trading day.

  • If you’re buying, you’ll pay the Ask price (or close to it, depending on volume, and liquidity).
  • If you’re selling, you’ll receive the Bid price (or close to it, depending on volume, and liquidity).

 

Learn more about market orders.

 

Limit order

Limit orders allow you to set a price. You can specify the maximum price you’ll pay when buying securities, or the minimum you’ll accept when selling them. Limit orders will only execute at your given price or better, before the order “expires”.

Learn more about limit orders.

 

Learn more about order durations

Note: Some Market and Limit orders may be subject to ECN fees, learn more about what they are and how to avoid them here.

Questrade Edge

With the Questrade Edge platforms (Web and Desktop), you can also choose from an additional 6 advanced order types:

Ordertype Description
Stop (loss) order

 

A type of order used to buy or sell securities when the market price reaches a specified value, known as the stop price. Stop orders are generally used to limit losses, or to protect profits for a security that has been sold short.
Stop-limit order

 

A stop-limit order combines a stop order with a limit order. With this order type, you enter two price points: a stop price and a limit price.

If the market value of the security reaches your stop price (first price point), it automatically creates a limit order (second price point), as long as it happens within the specified duration time.
Trailing stop order

 

A trailing stop order is a type of order that triggers a market order to buy or sell a security once the market price reaches a specified percentage or dollar trailing amount that is below the peak price for sells or above the lowest price for buys.

Trailing stop-limit order

 

A trailing-stop limit order is a type of order that triggers a limit order to buy or sell a security once the market price reaches a specified dollar trailing amount that is below the peak price for sells or above the lowest price for buys.
Limit on open order

 

When you place a buy order with a limit on open order (LOO), you’re setting the maximum price you’re willing to pay. If the market price at open on the following trading day is at or below the maximum price (limit) you set, your order is processed. If the market price is above the limit you set, your order is cancelled.
Limit on close order

 

When you place a buy order with a limit on close order (LOC), you’re setting the maximum price you’re willing to pay. If the market price at close on the current trading day is at or below the maximum price (limit) you set, your order is processed. If the market price is above the limit you set, your order is cancelled.

Note:Some Market and Limit orders may be subject to ECN fees, learn more about what they are and how to avoid them here.

Note: The information in this blog is for information purposes only and should not be used or construed as financial, investment, or tax advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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