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Trading Terms

Order

It specifies the type of security, the amount to be bought or sold, and the price at which the transaction should take place. Orders can be market orders, which are executed immediately at the current market price, or limit orders, which are executed only at a specified price. An order is a crucial element in the world of finance, as it serves as an investor's directive to a broker or brokerage firm to purchase or sell a security on their behalf. This instruction outlines the type of security, the quantity to be traded, and the desired price for the transaction. Market orders are executed instantly at the prevailing market price, while limit orders are executed only at a predetermined price. Understanding the different types of orders is essential in managing investments effectively.
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