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 a stop order and a limit order. It allows you to specify:
A stop price – the price that triggers the order
A limit price – the minimum (for sell) or maximum (for buy) price you’re willing to accept
This type of order gives you control over the execution price while ensuring the trade is only triggered once your stop price is reached.
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.
Stop price: $450 → triggers the order when the market reaches this level
Limit price: $460 → the maximum price you’re willing to pay
How it works:
The order becomes active when the market hits $450
It will only execute if the market price is $460 or below
If the price rises above $460 too quickly, the order may not fill
Example – Sell Stop-Limit Order
You want to sell an asset if it drops below $300, but you don’t want to sell for less than $295.
Stop price: $300 → triggers the order when the market reaches this level
Limit price: $295 → the minimum price you’re willing to accept
How it works:
The order becomes active when the market hits $300
It will only execute if the market price is $295 or higher
If the price falls below $295 too quickly, the order may not fill
Tip – Rule of Thumb:
Buy Stop-Limit: stop ≤ limit (trigger first, cap max price)
Sell Stop-Limit: stop ≥ limit (trigger first, floor min price)
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