Orders may be entered at any rate – inside or outside the existing spread – using the following orders types:
- Market Order: An order based on a current market price.
- Limit orders: An order with restrictions on the maximum price to be paid or the minimum price to be received.
- Stop Loss orders: Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.
In normal markets, any sell stops will be filled on a dealer's bid, and buy stops are filled on a dealer's offer. If the market 'gaps' sharply up or down the stops will be filled at the best available price.