--- title: "What are two types of orders issuers may issues in equity trading?" description: "What are two types of orders issuers may issues in equity trading?" author: "nitya singh" published: 2018-02-27 canonical: https://answers.mindstick.com/qa/35101/what-are-two-types-of-orders-issuers-may-issues-in-equity-trading category: "share market" tags: ["share market"] reading_time: 3 minutes --- # What are two types of orders issuers may issues in equity trading? ## Answers ### Answer by Shriyam Srivastava The types of orders that are issued during equity trading are [referred to as](https://answers.mindstick.com/qa/97935/which-indian-cricketer-is-referred-to-as-the-great-wall) '**Trade Order'** Placing an order at the stock is not limited to just 'Buy' and 'Sell'...it undergoes various types of tracking between the **expected price of the order** and the **price at which it was actually fixed.** It is important to place some [stock market](https://yourviews.mindstick.com/view/86397/here-you-will-find-the-10-dark-secrets-about-the-stock-market) order limit for continuous [monitoring](https://answers.mindstick.com/qa/116504/what-is-portfolio-monitoring) of your particular order. ![What are two types of orders issuers may issues in equity trading?](https://answers.mindstick.com/questionanswer/b0418a6c-db4a-46db-a8fa-9917e2a34108/images/caf4d389-df81-479b-9f8d-ef923e638110.jpeg) When trading stocks that are highly volatile or trading in a fast-moving market, slippage can be the [difference](https://yourviews.mindstick.com/view/84555/google-analytics-4-ga4-vs-universal-analytics-actual-difference)-maker between a **profit and loss** position. Therefore, [understanding](https://yourviews.mindstick.com/view/87088/unlocking-the-value-understanding-the-price-list-of-tata-tiscon) trade orders beyond the traditional “buy” and “sell” is very important. *There are various types of trade orders which could be exercised to monitor our stock:* 1. **[Market Order](https://answers.mindstick.com/qa/105008/what-is-a-market-order):** used to purchase or sell an order **at the [current market](https://answers.mindstick.com/qa/114591/what-are-the-pros-and-cons-of-foldable-smartphones-in-the-current-market) price.** Here, the customer/broker does not control the amount paid for the stock purchase or sale. The market controls the price of the stock. **A market order poses a high slippage risk in a fast-moving market.** Thus, making it less profitable. For eg, [if you place](https://answers.mindstick.com/qa/37639/if-you-place-4-magnets-in-your-house-s-electricity-switchers-box-would-it-null-the-consumption-measured) an order for 100 shares, you will receive those 100 shares at the stock's price and not your own price. 2. **[Limit order](https://answers.mindstick.com/qa/105032/what-is-a-limit-order):** it is usually a beneficial order traders. **It is used to purchase or sell a stock at a specific set price** (set by the trader himself/herself). It is helpful in preventing to buy or sell an order at a price which the trader doesn't want. **Therefore, in this type of order, if the market price is not in line with the limit order price, the order will not execute.** There are two types of limit orders: *buy limit order and sell limit order.* 3. **Stop order:** Also referred to as 'stop-loss order' is helpful in preventing any loss of the trader. **It sells a stock when it reaches a certain price set by the trader.** During the short-term trading, the stock will be purchased if it trades above the stop order price. 4. **Stop Limit order:** it is a conditional trade order that combines the features of a stop and limit order. It requires to place two prices: **stop price and limit price.** Once the stock hits the stop price, the order becomes a limit order. **It guarantees a price limit and also to stop the order at a certain price.** For example: a trader wants to buy an order of Rs. 350 under Rs.290 but only if it falls to Rs. 287. He/she sets a stop-limit order by *setting a stop price at Rs. 290 and limit price of Rs. 287. **Once the stock drops below Rs. 290, then Rs. 287 becomes a limit order.*** 5. **Trailing Stop order:** It is based on the **percentage change in market price** as opposed to a specific target price. After applying this order, the stock will be purchased if it increases by a determined percentage. For example, an investor purchases a stock at a price of Rs. 550. He/she puts a trailing stop order of 20%. If the stock declines 20% or more, the order will be executed. Using these stock market techniques one can easily trade/[invest in stocks](https://answers.mindstick.com/qa/103170/how-to-invest-in-stocks) online without worrying about his/her loss because these functions will monitor the order effectively. #### *Happy trading!* #### ![What are two types of orders issuers may issues in equity trading?](https://answers.mindstick.com/questionanswer/b0418a6c-db4a-46db-a8fa-9917e2a34108/images/030ad99c-db51-4e52-b9fd-9a409dcd10a9.jpeg) *\* --- Original Source: https://answers.mindstick.com/qa/35101/what-are-two-types-of-orders-issuers-may-issues-in-equity-trading Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.