What Is At-or-Better?
At-or-better orders are executed exclusively at a specific price or above. They are an illustration of a limit order, which sets a specific price to be met for a trade to be made.
At-or-better orders are a type of limit order instead of market orders. Market orders are executed more rapidly than limit orders and are the best decision while needing the quickest trade with less concern about a specific price while taking a long position in a stock. Market orders cost not as much as limit orders however don't guarantee a price.
Limit orders take more time to execute given their specific price requirements and may not be executed for a long time, or ever, in the event that the ideal price doesn't open up. Since limit orders are more complicated to trade, they carry higher brokerage fees than market orders.
Investors utilize an assortment of order types relying upon the specific situation. An investor putting in an at-or-better request is searching for a breakout and needs to participate in the next move upwards by having an order previously placed to come full circle at that price.
Stop orders are regularly utilized as a method for changing over a limit order into a market order. When a stock price stirs things up around town you decide, the order converts to a market order that will buy at the next accessible price.
A variation of the stop order is the stop-limit order. For instance, an investor can set a stop-limit order with a stop price of $25 and a limit price of $23. In this case, when the price stirs things up around town price of $25, it turns into a limit order that won't unfold except if the price comes to the $23 share price.
In every one of the above examples the investor has concluded that a specific stock is just of interest at a certain buy or sell price. These limit orders are instrumental in permitting day traders and chartists to set up numerous simultaneous automated orders all with buy and sell levels in place.
Putting in At-or-Better Requests in the Modern Era
Innovation has transformed how stock orders are placed, taking what was once an area of aptitude restricted to professional brokers and giving it to the majority by means of online trading locales. Volumes and volatility have increased with the coming of [high-speed trading](/high-recurrence trading).
With this change in how orders are placed comes the requirement for lay investors to completely comprehend the many types of trades they can make, going from all-or-none to at-or-better orders. For this reason it is really smart to spend time exploring the many order types before setting trades.
- Limit orders take more time to execute and may not even be executed due to their specific price requirements.
- At-or-better orders are instances of limit orders. They are executed at a specific price or above.
- Putting in an at-or-better request is searching for a breakout and needing to participate in the next move upwards.
- With the coming of high-speed trading, lay investors need to completely comprehend the many types of trades they can make, going from all-or-none to at-or-better orders.