Common Order Types Clause Samples

Common Order Types. A “market” order is an order that that must be executed promptly at the current market price of a security at the time such order is routed for execution, regardless of price. Although such an order will ensure prompt execution, a client cannot know at what price a market order will be executed. This is especially true during periods of increased price volatility. A client should carefully consider the risks of placing a market order to purchase securities “at the market” during periods of extreme volatility, such as when purchasing securities that have recently begun trading publicly. A “limit” order is an order that may only be executed if a specific price is met or passed. With a limit order, a client will receive price protection. Placing a limit order will mitigate the risk of execution of a securities order at prices away from market prices quoted at the time a trade order was given. However, there is a risk that a limit order will not be executed.