Learn the differences between market orders, limit orders and stop orders including examples. For more information on placing orders through NinjaTrader, make sure to visit the NinjaTrader Video Library to view introduction clips on submitting orders, modifying order price, and more.

Market Order

The market order is the most frequently used order. It is a good order to use once you have made a decision about opening or closing a position. It can keep the customer from having to chase a market trying to get in or out of a position. The market order is executed at the best possible price obtainable at the time the order reaches the trading pit.

Limit Order

The limit order is an order to buy or sell at a designated price. Limit Orders to buy are placed below the market while limit orders to sell are placed above the market. Since the market may never get high enough or low enough to trigger a limit order, a customer may miss the market if he uses a limit order. (Even though you may see the market touch a limit price several times, this does not guarantee or earn the customer a fill at that price.)

• When buying, if the order price is lower than (below) the current market price, it is a Buy Limit.
  • As an example, with the market trading at 1802.5, Buy 1 Dec E-mini S&P 500 (ES) at 1802.5 on a Limit (or better…fill at 1802.50 or lower). Order can only be filled at the stated price (1802.5) or lower (better).
• When selling, if the order price is higher than (above) the current market price, it is a Sell Limit.
  • As an example, with the market trading at 1809.25, Sell 1 Dec E-mini S&P 500 (ES) at 1809.25 on a Limit (or better…fill at 1809.25 or higher). Can only be filled at the stated price (1809.25) or higher (better).

Stop Order

Stop orders can be used for three purposes:

• to minimize a loss on a long or short position;
• to protect a profit on an existing long or short position; or
• to initiate a new long or short position.

A buy stop order is placed above the market and a sell stop order is placed below the market. Once the stop price is touched, the order is treated like a market order and will be filled at the best possible price.

• When buying, if the order price is higher than (above) the current market price, it is a Buy Stop.
  • As an example, with the market trading at 1790.00, Buy 1 Dec E-mini S&P 500 at 1790.00 Stop. Can only be filled at the Market, after the Market trades (or is "offered") at 1790.00 or higher.
• When selling, if the order price is lower than (below) the current market price, it is a Sell Stop.
  • As an example, with the market trading at 1801.75, Sell 1 Dec E-mini S&P 500 at 1801.75 Stop. Can only be filled at the Market, after the Market trades (or is "bid") at 1801.75 or lower.

Stop Limit Order

A stop limit order lists two prices and is an attempt to gain more control over the price at which your stop is filled. The first part of the order is written like the above stop order. The second part of the order specifies a limit price. This indicates that once your stop is triggered, you do not wish to be filled beyond the limit price. Stop limit orders should usually not be used when trying to exit a position. If a customer does not give a limit price, then the stop price and the limit price are meant to be identical.

Good Until Canceled Order (GTC)

Good Till Canceled (or Open Order). Used in conjunction with a Limit or Stop order. Order will remain valid and worked until client cancels order, or it is filled, or contract expires.

GTC Order Does Not Cancel Automatically!

If an order is not designated Good Till Canceled, it is a Day Order and will expire at the end of the current trading session unless filled or canceled prior to the close.

One Cancels the Other Order (OCO)

One (order) Cancels (the) Other.

• As an example, with the market trading at 1804.50 you want to buy at 1802.25 Limit (lower), or on an upside breakout at 1806.25 Stop (higher), Buy 1 Dec E-mini S&P 500 1802.25 on a Limit, OCO Buy 1 Dec E-mini S&P 500 at 1806.25 Stop.

When one order is executed, the other is automatically canceled. This same process can be used to bracket an entry with a stop and target which are OCO.