Types of trades (stop, limit, etc.)

Market Orders

The most common type of order is a "market order." The execution price you receive on a market order is determined by the current market price at the time your order is presented in the marketplace. Usually, a buy market order will be executed at or near the current ask, and a sell market order at or near the current bid.

Limit Orders

You can specify what buy or sell price you are willing to accept by entering a "limit order." A limit order can only be executed at the specified price or better (i.e., a buy limit order must be filled at your limit price or lower and a sell limit order must be filled at your limit price or higher). Thus, the limit order runs the risk of not being executed since there is no guarantee that the market price will ever reach your limit price.

Summary: Buy <= limit, sell >= limit.

Stop Market Orders

By placing a "stop market" order, you specify the price that "triggers" your order to become a market order, which is then subject to all applicable rules and regulations regarding market orders. A "stop market" order placed for an OTC security is "triggered" when either the bid or offer reaches the "trigger" price that you have selected. A "stop market" order placed for a listed security is "triggered" when the security trades at that price. A buy stop market order must be placed above the current market price and a sell stop market order below the current market price. Stop orders, typically, are used to limit a loss or protect a profit.

Summary: Buy > current price, sell < current price.

Stop Limit Orders

A "stop limit" order is similar to a stop market order except that once the order is "triggered," it becomes a limit order instead of a market order. (Again, orders placed for OTC securities are "triggered" when a bid/offer reaches your stop price. For Listed orders, a trade must occur at your stop price to "trigger" the limit order.) While normally the limit price is set equal to the stop ("trigger") price, the limit price can differ from the stop price. Once the limit order has been "triggered," it is subject to all applicable rules and regulations regarding limit orders.

Summary: First the stop is executed, and then the limit.

NOTE: Stop and stop limit orders are only available on certain Over-the-Counter securities. They are available on all listed securities.

Limit Sweep Orders

A Limit Sweep Order allows you to attempt to fill your entire order by automatically cycling through all available ECNs and Market Makers. See below for a complete explanation of how a Limit Sweep Order works.

The order is split and routed to each market participant in the following order and in the available size shown on Level II by each participant:

Best tier price (highest bid or lowest ask) Track Island Other ECNs (REDI, MarketXT, INCA,etc.) Direct access market makers (Knight, Herzog, MASH, etc.) Other Market Makers via Selectnet

Next price tier (up to and including limit price)

Same ranking as above

If the order is not completely filled during the first round of submissions, either because not enough shares are available from all Level II participants at the limit price or because market makers reject all or a portion of the order received by them, then the remaining portion of the order is resubmitted via additional sweep attempts after approximately 10 seconds if any market maker still displays on Level II at or better than the limit price.

If the quantity sent to the market maker is not filled within approximately 20 seconds, the unfilled portion is cancelled and resubmitted via an additional sweep order segment.

Orders will only be routed to market makers appearing on the Level II display at or better than the limit price. Preferences and exclusions do not apply for sweep orders.

The order will be submitted in pieces, as indicated above, with each piece appearing as a separate order on the open order tab. Each segment may be cancelled by using standard cancel procedures.

If the order limit price is better than the best quote shown on Level II, the order becomes a regular limit order and is treated as such. It will not become a sweep order if market makers subsequently appear at the limit price.

Market Sweep Orders

When submitting a market sweep order, your order will turn into a limit sweep order set $1 above/below the current price. For example: If you wish to enter a market sweep buy for a security which is trading at 23.45, the system will turn the order to a limit sweep order with a limit of 24.45 or better.

Pseudo Market Sweep Orders

This can be achieved by setting the limit price at a level which will clear all the volume in the order using the displayed Level II market maker volumes plus a safety margin. For example: A buy for 2000 shares shows that the cumulative volume at 24 7/8 is 800, at 25 it's 2100, at 25 1/8 it's 2700, and at 25 ¼ it's 3500. You submit a limit of 25 1/8 or 25 ¼ to ensure your quantity is available.