You can place orders to buy and sell securities with a broker in many different ways.

Buy-and-sell orders: Buy-and-sell orders are directions you give to a broker to purchase or sell a specific number of shares at the market price or when the share reaches a specific price.

Market orders: Market orders are directions to buy or sell a specific number of shares at the current market price. A benefit of this type of order is that it is the easiest to execute. A disadvantage is that the price may be significantly higher (for a buy) or lower (for a sell) than you had planned.

Limit orders: Limit orders are directions you give to a broker to buy or sell a specific number of shares at a specific price (or a better price, if possible). An advantage is that you may get the limit price or better. A disadvantage is that you may not get any shares at all if the market moves against you.

Day orders: Day orders are buy-and-sell orders that are valid only until the end of the trading day. A benefit of this type of order is that at the end of the day you know everything you bought or sold. A disadvantage is that unfilled orders are automatically canceled.

Open orders, or good-till-canceled (GTC) orders: Open orders, or good-till-canceled (GTC) orders, are valid until they are filled or canceled. An advantage is that you can keep open orders for long periods of time; this may be helpful when dealing with securities that are thinly traded. A disadvantage is that if you fail to cancel these orders, they could be unexpectedly filled at a later date; if this happens, you are responsible for paying any fees related to the order.

Fill-or-kill orders: Fill-or-kill orders are orders that must either be filled or canceled immediately. Most often, these are market orders at the current market price. An advantage of this type of order is you will know immediately whether you have purchased or sold the shares. A disadvantage is that your trade may not be executed.

Stop orders and stop-loss orders: Stop orders and stop-loss orders are directions to either sell a specific number of shares if the stock price falls below a certain level or directions to buy a specific number of shares if the stock price rises above a certain level. Use care when you set stop prices to safeguard against major fluctuations. An advantage of this type of order is that you can minimize loss if the market price of a security falls. A disadvantage is that the brokerage house may not be able to sell the asset at the stop-loss price if the market falls too quickly.

When you trade, use wisdom in your decisions. I generally recommend using limit orders, which are only good for one day; this way are sure you will get the price you want (or nothing at all), and you are sure that at the end of every day, your orders will have all been canceled. I also recommend that you try to buy and sell shares in round lots. Round lots, orders of one hundred shares or multiples of one hundred shares, are easier to sell than odd lots, orders of one to ninety-nine shares. You will get better execution and a better price if you sell and buy round lots versus odd lots.