---
title: Order Types
group: Trading
subtitle: Understand the difference between market, limit, and stop orders.
description: Reference for the order types available at Light Horse Securities — market, limit, stop, stop-limit — and how order duration (day vs. good-till-canceled) works.
---

## Market Orders

A **market order** buys or sells immediately at the current best available price. Use market orders when speed of execution is more important than price precision.

**Best for:** Liquid stocks (high trading volume) where the bid-ask spread is narrow.

## Limit Orders

A **limit order** executes only at your specified price or better.

- **Buy limit:** executes at your limit price or lower
- **Sell limit:** executes at your limit price or higher

If the market never reaches your limit price, the order will not execute.

**Best for:** Setting a maximum price you're willing to pay, or a minimum price you're willing to accept.

## Stop Orders

A **stop order** (also called a stop-loss) becomes a market order once the stock reaches your specified stop price.

- **Stop buy:** triggers when price rises to your stop price (used to enter a short cover)
- **Stop sell:** triggers when price falls to your stop price (used to limit losses)

## Stop-Limit Orders

A **stop-limit order** combines a stop and a limit. When the stop price is reached, it becomes a **limit order** at your specified limit price — not a market order. This gives you price control but risks non-execution if the market moves through your limit quickly.

## Order Duration

- **Day orders:** expire at market close if not filled
- **Good-till-canceled (GTC):** remain active until filled or manually canceled (up to 60 days)