There are many different types of stock orders. Some orders are simple and basic, others are complex. Often the same type of complex order is called different names by different brokers.

At Insight Stock Picks we generally use just 3 types of orders. The three types of orders are universally considered the three basic types of orders. If we ever use a type of order that is not on this list, it will be explained fully in our daily alert.
Our three basic order types are:

1. Market Orders
2. Limit Orders
3. Stop Orders

Limit Orders:

A limit order is a type of order that has a specific price at which the trader wants to buy the stock. Limit orders are usually buy limit orders or sell limit orders. Buy limit orders are the type of order we most often use to enter a long position.

Buy Limit Order: A trader wants to buy a stock that is now trading at $8.25, but he want to pay only $8.00. If he enters a market order, he will get filled at $8.25
So he enters a "buy limit order" at $8.00. If during the day the stock begins to trade lower and hits the $8.00 price, his order will be filled.

Sell Limit Order: A "sell limit order" works in reverse. The stock is again trading at $8.25 and the trader wants to sell at $8.50. He would then enter a sell limit order for $8.50 and his order will be filled if the stock price rises to $8.50 or higher during the trading day.

Next Topic Types of Stock orders; Stop Order