A market order is an order to buy or sell a stock at the best available price.

Most orders can be entered as market orders, except when the order is for:

• An OTCBB or pink sheet equity;
• A TSX-listed equity, and you are entering the orders between
  4 p.m. and 8:15 a.m.;
• Options orders outside of regular market hours;
• All or none (AON).

A limit order is an order to buy or sell a stock at a specific price or better.

If you are entering an order for a TSX-listed security between 4 p.m. and 8:15 a.m. ET, you can enter it as a limit order. You can also enter limit orders during regular market hours.

A stop order is an order to buy or sell a stock once the stock reaches a specified price (the stop price). When the stop price is reached, it becomes a market order.

A stop limit order combines the features of a stop order and a limit order. Once the stop price is reached, a stop limit order becomes a limit order that will be executed at a specified price or better.

Stop limit orders can be used for the following:

• Canadian equities (on Canadian exchanges, the limit price must match the stop price);
• U.S. odd-lot and mixed-lot orders;
• OTCBB equities;
• U.S. options.

Stop limit orders can’t be used for the following:

• Canadian equities (if the limit price doesn’t match the stop price);
• Canadian options.

A VTSO is a stop order that adjusts as the price of a stock moves. The stop price is placed at a set amount above the market price if it is a short sale, or below the market price if it is a long position. The stop price then adjusts as the price of the stock moves up or down.

VTSOs can only be entered during regular market hours. They can be used for the following:

• Day, GTC and GTD orders;
• Most equity orders (except OTC and pink sheets);
• Short sale orders.

VTSOs can’t be used for the following:

• U.S. or Canadian options
• GTEM orders;
• OTCBB equities;
• Canadian odd lots;
• OTC and pink sheet equities;
• All or none (AON) orders.

A short sale is the sale of a stock by an investor who does not own it. Investors who sell short believe the price of the stock will fall. If the price drops, a short seller can buy the stock at the lower price and make a profit. If the price of the stock rises and the short seller buys it back later at the higher price, they will incur a loss. A short seller’s brokerage firm loans him or her shares of the stock.

Short sale orders can only be placed in a margin account. They are not permitted in registered accounts.

They can be entered for:

• Equities (if sufficient share inventory is available);
• Day orders.

Short sale orders can be entered as virtual trailing stop (VTSO) orders.

Several restrictions apply to short sale orders. They can’t be:

• Entered in registered accounts;
• Good till cancelled (GTC) orders;
• Odd lots for Canadian equities;
• Entered for stocks trading at $0.09 or lower on Canadian exchanges.

A day order is valid from the time the order is entered until the end of trading on that day. There are generally no restrictions on this type of order.

A GTC order will remain open until it is executed, cancelled, or it expires. GTC orders for Canadian securities expire after three months. For U.S. securities, they expire after six months if the order was entered using the MNGD ECN route.

A GTD order is good until a specified date, up to a maximum of 30 days from the order date.

GTD can only be used for Canadian securities.

A GTEM order will allow an order to be filled in pre- and post-market trading as well as during regular market hours.

Some restrictions apply to GTEM orders:

• They can’t be used for market orders;
• They can’t be sent through ECN routes other than INET and ARCA for U.S. exchanges. MNGD orders are also prohibited;
• They can’t be queued;
• They can’t be used for all or none (AON) orders.

Order entry in registered accounts

Only certain securities can be held inside registered accounts.

• Eligible Canadian and U.S. equities;
• Eligible mutual funds;
• Bonds;
• Gold.

Only certain options trades can be carried out in registered accounts:

• Buying Canadian or U.S. call and put options;
• Selling Canadian and U.S. covered calls.

Certain trades and investments are not allowed in a registered account. These are:

• Ineligible securities;
• Short sale orders;
• Option spreads/straddles;
• Uncovered Canadian and U.S. options;
• Trading on margin.

See the Canada Revenue Agency’s website for more information aboout eligible investments for registered savings plans and TFSAs.

A board lot is a regular trading quantity of a stock. Any quantity of the stock that is not a multiple of that quantity is considered an odd lot.

Board lot sizes vary by the share price of the equity being traded:

• Board lot for equities >$1.00 is 100 shares;
• Board lot for equities >$0.10 and <$0.99 is 500 shares;
• Board lot for equities <$0.10 is 1,000 shares.

You can enter odd lot orders on the following exchanges:

• Canadian exchanges with regular market hours (e.g., TSX, TSX Venture);
• U.S. exchanges with regular, pre- and post-market hours.

Odd lot orders are not allowed for the following:

• Canadian VTSOs;
• Canadian short sale orders;
• Canadian all or none orders;
• Orders on the TSX entered between 4 p.m. and 8:15 a.m. ET.

Options have fixed price increments that are based on the price of the option contract:

• Contracts $2.99 and under are priced in $0.05 increments
• Contracts $3.00 and higher are priced in $0.10 increments