An order is an investor's instruction addressed to a broker or brokerage firm for the purchase or sale of an asset. Orders are usually executed by phone or online. Orders are classified into various available types, which allows investors to impose price and time restrictions for the execution of an order. Thanks to these instructions, after the execution of the order, the investor receives a profit or loss from the transaction.
For example, a market order instructs the broker to execute the order at the next available price or at the closing price of the day. A limit order instructs the broker to execute the purchase or sale of an asset at a price equal to or lower than a certain price. Limit orders remain valid until they are executed, until the investor cancels them, or until they expire. An intraday order must be executed within one trading day during which the order is placed, while the execution or cancellation of a regular order must be carried out immediately and completely or not at all. These are just a few examples of time and price restrictions that can be set in relation to orders.