Market Execution vs Pending Stock Order
There are different types of stock orders which a trader can use to trade in Stock.
The most important thing to remember about stock orders is this: Always understand the stock orders you place when stock trading. Never place a stocks order which as a trader you are not entirely knowledgeable about. Below are the some basic definitions and explanations of the commonly used stock orders - types of stock orders explained:
Stock Trading Market Execution Orders and Pending Stock Orders
Market Execution Stock Trading Order
This is the most basic type of stock order, Market Execution Order is used to buy or sell at the current ask or bid stock trading quote stocks price. This Market Execution Order refers to the quoted stocks price which pops up on your stock trading platform.
This type of stocks order - Market Execution Stock Trading Order - is used for buying or selling at the current price stock trading quote in Stock Trading, the execution of this stocks order is instant. The min you want to enter a position you can buy and sell stock at a click of a button key using a stock trading Market Execution Order - also known as a Market Order or Market Instant Execution Order.
Pending Stocks Orders
These are stock orders used to open a new stock trade position after the stocks market reaches a stock price specified by the trader.
Pending Stock Orders are used to buy or sell stock when the stock price attains a certain stock price target.
When a specific stocks price level is reached or broken then a stock trading Pending Stock Order is executed.
These Pending Stock Orders are used to enter a stock trade at a specified stocks price level. It is almost impossible to monitor the stocks market every second and this is why a Pending Stock Order can be useful when trading stock. If you feel the stocks market may take a certain action, such as break through a specific stocks price level that it has been touching but it has not been able to break, you would want to use an Entry Limit Stocks Order - Pending Stock Order. Once the stocks market crosses your specified level, your entry limit stock trading order is executed.
There are two different types of Pending Stock Orders - Entry Limit Stock Order & Entry Stop Stock Order.
These Pending Stock Orders are also referred to as Entry Limit Stock Orders or Entry Stop Stock Orders.
Pending Stocks Order
An order to buy or sell at a specific limit.
An Entry Limit Stocks Order - Pending Stock Order can be used to buy below the current stocks price or sell above the current stock price.
When buying, entry limit stocks order is executed when the stocks price falls to your limit level stock price.
When selling, entry limit stocks order is executed when the stocks price rises to your limit level stock price.
These Entry Limit Stocks Order - Pending Stock Orders are placed by stock traders when they expect the stocks market to bounce back after reaching the stocks price level at which the entry limit stock order was placed.
- Buy Limit Stocks Order - Pending Stock OrderSpecifies to buy at a level below the current stock market stock price
- Sell Limit Stocks Order - Pending Stock OrderSpecifies to sell at a level above the current stock market stock price
Entry Stop Stock Order
An entry stop order is an order to buy above the current stocks price or to sell below the current stock price.
When buying, entry stop order pending stocks order is executed as the stocks market goes upwards and hits buy stop level.
When selling, entry stop pending order pending stocks order is executed as the stocks market goes down & hits the sell stop level.
- Buy Stop Stocks Order - Pending Stock OrderSpecifies to buy at a level above current market stock price.
- Sell Stop Stocks Order - Pending Stock OrderSpecifies to sell at a level below the current market stock price.
