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 fixed 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 for execution. It is the fastest and most direct way to trade.
- Methods: You can place market orders by indicating the number of shares or the dollar amount (USD) you wish to invest.
- After-hours: If placed outside market hours (9:30 a.m. to 4:00 p.m. ET), it will execute at the start of the next business day.
- Restriction: Fractional orders cannot be canceled once they are placed.
Limit Order
A Limit Order is an instruction to buy or sell shares at a fixed price or better. These can last for the trading day or up to 180 days (GTC - Good 'Til Canceled).
- Limit Buy Order: You set a maximum price you are willing to pay. It only executes at that price or lower.
- Example: Stock ABC is at $20, but you only want to pay $15. If it hits $15 or less, you buy. If not, it won't execute.
- Limit Sell Order: You set a minimum price you are willing to receive. It only executes at that price or higher.
- Example: Stock ABC is at $20, but you want $25. If it hits $25 or more, you sell. If not, it won't execute.
Stop Order
A Stop Order is an instruction to buy or sell only after a specific price level (the Stop Price) is reached. Once reached, it becomes a market order.
- Stop Buy Order: Used to buy at a price higher than the current one, often when an investor believes a breakout will occur.
- Example: ABC is at $20. You set a Stop at $24. If it hits $24, your order becomes a market order to buy at the best available price.
- Stop Sell Order: Often called a "Stop Loss," it is used to protect against price drops.
- Example: ABC is at $20. You set a Stop at $15. If it falls to $15 or less, your order becomes a market order to sell and minimize losses.
