Trading of financial instruments like stocks, bonds, currencies, commodities and futures have become more complex than just buying and selling. As the needs of traders diversified over the period and new financial instruments and execution procedures introduced, the need of different kinds of order executions and transactions become a necessity. So brokers and trading firms started to introduce different kinds of order types.
Orders are instructions from the trader to the broker to do a transaction. It can be a buy order or sell order. They can be placed on phone or online through the trading platform. These are of different types enabling the trader to place restrictions for execution depending on price and time. The order execution involves a fee; which is charged by the brokerage firm. The fee can be flat or percentage or can be spread differences of ask and bid prices. The types available for a trader depends upon the brokerage firm, his/her account type and financial instrument. Below are some of the most popular types of trading orders offered by stock and forex brokers.
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