Fixed price order
When the broker receives instruction from the client to buy or sell certain shares at a fixed price indicated in the order it is called a “fixed price or at limit order” for example a fixed order may say, “sell 20 shares of “CROWN” at $.340 or Buy 20 shares of “CROWN” at $.330.
At best or At the Market order
Where no price is specified in the order and it must be executed immediately at the best price obtainable at the time. It is called at Best or At the Market order. In this type of order broker has no discretion. For instance “Buy or sell 50 shares of “HSBC” at best.
Where no time limit is declared by the client during whom his order must be executed, it is named as an open order.
When the client full confidence in his broker he may instruct to buy or sell certain securities at whatever he .thinks reasonable.
An Immediate or Cancel Order
This order must be executed at once at the best possible price by the broker. For example, buy or sell 50 shares of “MAZDA” at $.450 immediately or cancel If he share are not available at the same price as desired by the client, the order would be cancelled and it will be reported to the client.
Such an order is placed by the client with a view to protect himself against a heavy fluctuation in prices. For instance Buy 50 shares of “PHILIPS” at $450 or stop. “This means that the broker will not act so long as the price remains below $450.
When it reaches $450, the brokers must purchase the shares. If investor wants to dispose of his shares which had been bought at $450, he may instruct the broker to sell 50 shares of “PHILIPS” at $.440 Stop.
“There by his loss will not exceed $10 per share