Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Are you long or short on indices?

Trade Indices Now >
Long Or Short On Indices?
View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • Forex Trading
  • Vantage Rewards
  • Spreads
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
  • tiktok
  • spotify
The 6 Different Types of Market Orders 

TABLE OF CONTENTS

The 6 Different Types of Market Orders 

The 6 Different Types of Market Orders 

Vantage Updated Updated Mon, 2023 March 6 09:05

Now with the basics of technical and fundamental analysis covered in the previous articles, let us dive into the methods traders may use to enter a Buy or Sell position in the markets. Whether you’re a day trader or a long-term investor, having an optimal entry when placing a trade plays an important role in achieving trading success.  

What Are The Different Order Types? 

When it comes to entering a trade position in the financial markets, it is split into three major types: Market Order, Limit Order, and Stop Order.  

Figure 1 – Different Order Types (https://www.tradingview.com/x/6EQafjxl/)  

Market Order = Instant Execution Buy/Sell 

The most common order type is market orders, also known as instant executions.  

Just as the name implies, the Buy or Sell position placed by the trader is instantly executed at the current price of the market, on a real-time basis. Depending on the chosen broker, the order placed automatically searches for the best available price in the market to execute the order.  

Instant executions are particularly useful for traders who want to trade at the quoted price. 

Do take note of the Forex market’s volatility, which could result in rapid changes in price. Hence, there will be instances where the marker order is executed at a slightly different price than the one intended.  

Limit Order (Pending Order) = Buy/sell Limit 

Figure 2 – Buy/Sell Limit (https://www.tradingview.com/x/8FtIFwPZ/)  

A limit order will only be executed if the price reaches the trader’s desired level whereas the order will remain unfilled if the price does not reach such level.  

Unlike instant execution where the trade is live from the moment traders buy or sell, traders would not pay a cent more for the order but it’s possible that it could be executed at a price lower than the pre-defined level. 

Limit orders are usually used by traders who aim for the sharpest entry possible. Limit orders also do not require constant attention on the financial markets as the position would only be opened if the pre-defined limit order price is reached.  

Stop Order = Buy/Sell Stop 

Figure 3 – Buy/Sell Stop (https://www.tradingview.com/x/hL536y33/)  

Stop orders are usually used by traders who want to further confirm that the markets are trading in their favour before entering a trade, because stop order is always executed in the direction to which the market moves. Traders using stop orders want to buy into the markets only after prices have risen to the buy stop price, or sell only after the markets have fallen to the sell stop price.  

So which market order type should you be using? 

Different order types serve different trading preferences and goals. Through different order types, traders have an array of choices on how to enter the markets.  

Want to try trading CFDs with different market orders? Practise it on our demo account

  • vantage academy open account

    Open Trading Account

    Discover the endless trading possibilities with our cutting-edge platform, designed to empower both beginners and seasoned traders alike.

  • vantage academy app

    Download Vantage App

    Trade on the go with the Vantage All-In-One Trading App, where smooth execution and market access come together in the palm of your hand.

  • vantage academy start trading

    Start Trading

    Are you an existing user? Login to your account to start trading 1,000+ products including forex, indices, gold, shares and more.