At Folionet, you can place different types of orders: market orders, fractional orders, limit orders, and stop orders. Both buy and sell orders on the platform have a flat processing fee of $0.98.
Market Order
A market order is an instruction to buy or sell shares at the current market price, without setting price or time restrictions on execution. It is the fastest and most direct way to trade.
At Folionet, you can place market orders in two ways: by specifying the number of shares you want to trade, or by specifying the dollar amount (USD) you want to invest.
If you place a market order outside market hours (9:30 a.m. to 4:00 p.m. New York time), it will be executed at the start of the next trading day.
Fractional orders cannot be cancelled once placed.
Limit Order
A limit order is an instruction to buy or sell shares at a fixed price or better. These can be valid for the trading day or for up to 180 days (GTC — Good Till Cancelled). The price and execution implications will depend on whether you are buying or selling.
- Buy Limit Order: To place this type of order, specify a limit price. This is the maximum price you are willing to pay for a share. This order will only execute at the specified limit price or lower.
- Example for illustrative purposes only: Stock ABC is currently trading at $20, but you only want to pay $15. Set your limit price at $15.
- Scenario 1: If ABC drops to $15 or below, you will buy shares for a maximum of $15.
- Scenario 2: If ABC does not drop to $15, the order will not execute.
- Sell Limit Order: To place this type of order, specify a limit price. This is the minimum price at which you are willing to sell a share. This order will only execute at the specified limit price or higher.
- Example for illustrative purposes only: Stock ABC is currently trading at $20, but you want to receive at least $25. Set your limit price at $25.
- Scenario 1: If ABC rises to $25 or more, your shares will be sold for at least $25.
- Scenario 2: If ABC does not rise to $25, the order will not execute.
Stop Order
A stop order is an instruction to buy or sell only after a certain price (stop level) is reached. If shares fall and reach that price, stop orders help minimize losses by closing the position at the market price. Although commonly used to sell, they can also be used to buy.
- Buy Stop Order: To place this type of order, specify a stop price. This is used to buy shares at a price higher than the current one, when the investor believes the price will break through a barrier and continue rising. If the stock rises to the stop price, the order converts to a market buy order and is executed at the best available price at that moment.
- Example for illustrative purposes only: Stock ABC is trading at $20, but you want to wait to buy because you believe an uptrend will begin if it rises. You think if ABC reaches $24, it could keep going up. So you set a stop price at $24.
- Scenario 1: If ABC rises to $24 or more, your stop order converts to a market order and will execute at the best available price.
- Scenario 2: If ABC stays below $24, no order is executed.
- Sell Stop Order: To place this type of order, specify a stop price. This is used to sell shares at a price below the current one, when the investor believes the price will fall and wants to protect against losses. If the stock falls to the stop price, the order converts to a market sell order and is executed at the best available price.
- Example for illustrative purposes only: Stock ABC is trading at $20, but you want to wait to sell because you think it will rise. To protect yourself in case it falls, you set a stop price at $15.
- Scenario 1: If ABC falls to $15 or below, your stop order converts to a market order and will sell at the best available price.
- Scenario 2: If ABC stays at $15 or above, no order is executed.
