Order Types for Options
Understanding different order types helps you get better fills and manage your trades more effectively.
Common Order Types
Market Order
Executes immediately at the current market price. Fast but may get worse fills.
Limit Order
Executes only at your specified price or better. Better control but may not fill.
Stop Loss Order
Automatically sells if price drops to your stop level. Essential for risk management.
Best Practice
For options, use limit orders to avoid paying wide bid/ask spreads. Set your limit between the bid and ask for better fills.