So, you've picked a stock or asset you want to trade, and you've decided how many units to buy or sell. The next step? Placing the order.
For beginners, this step can seem a little confusing - because before executing a trade, you’ll need to choose an order type.
What Are Order Types?
Order types are instructions you give your broker that specify how a trade should be executed.
On Capitalise.ai, there are four primary order types available:
1. Market Order
A market order is executed immediately at the best available market price.
Use this when you want the trade to go through as quickly as possible, regardless of the price.
2. Limit Order
A limit order lets you buy or sell an asset at a specific price or better.
For buy orders, this means the trade will only execute at the limit price or lower.
For sell orders, the trade will only go through at the limit price or higher.
3. Stop Order
A stop order becomes active only when the market price crosses a specific threshold.
A buy stop is triggered if the price rises above a certain level.
A sell stop is triggered if the price drops below a certain level.
Note: Stop orders are available only with select brokerages.
4. Stop-Limit Order
A stop-limit order combines the features of both a stop and a limit order. It’s used when you want a trade to be triggered at a certain price, but only executed within a specific price range.
Example (Buy Stop-Limit Order)
You want to buy an asset if it rises above $450, but you don’t want to pay more than $460.
You set a stop price at $450 — this triggers the order.
You set a limit price at $460 — the maximum you’re willing to pay.
This means your order will only execute after the price crosses $450, and only if it remains under $460.
With Capitalise.ai, you’ll need to define both the stop rate and the limit rate when placing a stop-limit order.
Understanding these order types helps you take better control over your trade execution and risk. Choose the one that fits your strategy - and let Capitalise.ai do the rest.
Note: All screenshots and examples are for technical demonstration purposes only. They should not be considered as recommendations for any specific trading strategy, nor do they constitute any form of advice. Please click here for further explanation