Markets
An order type defines how and at what price a buy or sell instruction is executed, for example as a market, limit, or stop order.
Order types determine how and at what price a securities purchase or sale is executed.
The most important order types: - Market order: immediate execution at the best available price - Limit order: execution only at the desired price or better - Stop order: becomes a market order once a specified price is reached - Stop-limit order: a combination of stop and limit
For ETF purchases and sales, a limit order is generally advisable to avoid unfavourable execution when the spread is wide. With savings plans, orders are executed automatically as market orders.
Related terms
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