Order type

The order type determines how and at what price your buy or sell order is executed on the stock exchange.

The 3 most important order types:

• Market order: buy/sell immediately at the current market price. Fast, but you don't control the price
• Limit order: only buy/sell when the price reaches your desired price. You set the maximum price when buying (or minimum price when selling)
• Stop order (stop-loss): automatic sale when the price falls below a certain level – protection against big losses

For ETF savings plans: market orders are used automatically – you don't need to worry about it. Limit orders are more relevant for active traders.