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Trading Glossary

Order

Basics

What it means

An instruction you send to your broker to buy or sell an asset. The order specifies what to trade, how much, and at what price (or at market).

Example

Sending "Buy 100 AAPL at $150 limit" is an order. The broker routes it to the exchange, which fills it only if AAPL reaches $150 or better.

Mistake beginners make

Beginners smash the buy button without choosing an order type, defaulting to a market order that can fill at any price -- often a bad one in fast markets.

Related terms

  • Fill — The moment your order is matched and executed. The fill price is the actual price you got,…
  • Execution — The whole process of getting your order filled: routing it, matching it, and reporting the…

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