An instruction, especially to a
broker, to
buy,
sell, or conduct some other
transaction involving a
security or
commodity. For example, if a client wishes to buy 100
shares in AT&T, he/she makes an order to a broker to that effect. Orders may take a number of forms. A
market order is an order to conduct a transaction at the current
market price. A
limit order is an order to conduct a transaction at a stated
price or better. A
stop order is an order to conduct a transaction at the best available price after a certain stated price is reached. Finally, a
stop-limit order is a stop order that becomes a limit order when the stated price (known as the
stop price) is reached.