Details to specify when placing an order
In this section you will learn about the details you need to tell your Broker when you place an order, the different types of orders and why an order may be cancelled.
- Security - All orders must indicate the security being ordered. Securities are defined by a unique ASX code.
- Quantity of securities - Each order must specify a quantity of the security to be bought or sold. Depending upon the value of the order, the quantity may or may not be disclosed.
- Price - An order must have a price. The way a price is expressed depends upon the security being ordered, ie shares, warrants, company options etc.
- Types of orders - The order type helps determine how the order trades and the price it may trade at.
- Crossings - Brokers must follow procedures when acting on behalf of both the buyer and the seller in a transaction.
- Life of an order - An order may be given an expiry date when it is placed, or it may be given a default expiry. In addition, certain market events will cause an order to be automatically cancelled prior to its expiry date.
- Other considerations - The decision to buy or sell should take into consideration factors other than the security and its price. Trade prices may be affected by the current market phase, upcoming dividends and so on.