Do you know how to buy and sell your favorite stocks? You can find the answer by exploring the features on moomoo! Let's learn about Order Types! Many mooers responded that there are too many order types on moomoo, with 8 types of US stocks. Are they really necessary?

If I tell you that mastering order types potentially allows you to buy or sell your favorite stock faster without keeping an eye on the market, would it make you want to learn more?

You might think it's too complicated to understand a dozen different types of orders. Don't worry! Moomoo will explain these different order types.

Why are there so many order types? Are they really necessary?

The answer is yes.

As complicated as they may seem, these different order types are actually designed to make it easier for users to operate.

Different order types can adapt to the needs of different scenarios for placing orders, making the choices as simple as possible to help users place orders quickly.

Before buying an outfit for a special occasion, you consider the time and type of event, weather, indoor or outdoor event, outfit style and fit, color, fabrics, cost, etc. There are tons of factors to consider. But if you have all the information and know what your style and color preferences are, you have a much easier decision to make.

The original purpose of the order type is to adapt to the needs of different scenarios for placing orders, making it easy for users to make decisions and place orders quickly.

Let's start by learning the Limit and Market Orders.

Pros and cons of Limit and Market Orders

01 Limit Orders:

The price is decided by yourself. You need to pay attention to the price and quantity.

Limit orders can only be executed at that specified price or better. For example, if you place a limit order to buy 500 TUTU shares at $11, you can't buy them at more than $11. If an investor wants to sell 500 TUTU shares at $10.5, the order may be filled at $10.5.

Advantages of Limit Orders: Orders can be filled at or better than the user's desired price.

Disadvantages of Limit Orders: You may have to wait a moment before orders are matched and filled. Additionally, limit orders are not guaranteed to be executed. A limit order can only be filled if the stock’s market price reaches the limit price.

02 Market Orders:

These are orders to buy or sell a security at the current best available price. Generally, this type of order will be executed immediately, but the price is not guaranteed.

The main difference between a market order and a limit order is that a limit order can be filled at a specific price or better whereas market orders don't guarantee a specific price, but typically ensures an execution. Limit orders are less likely to be filled when compared to market orders since the market price may never reach the limit price.

A market order can quickly match a bid or ask price. For example, if you want to buy 500 TUTU shares and an investor sells 500 TUTU shares at $50, the order can be executed immediately.

Advantages of Market Orders: They can generally be executed as quickly as possible at the current bid or ask price.

Disadvantages of Market Orders: Price is not controllable and more volatile.