What is a working order?
Where have you heard about working orders?
If you don’t have time to watch the markets 24/7, you might have been recommended working orders. They essentially tell your broker what you’d like to do in different market scenarios, so that they can act quickly and without having to get in touch with you.
What you need to know about working orders...
Both types of working order tell your broker you only want to make a trade if something happens to the asset price.
A stop order tells your broker to make a trade when an asset reaches a specific price. A limit order tells your broker the minimum and maximum amount you’re willing to buy or sell a stock. When that price is hit, your broker will make the trade and buy or sell an agreed-upon amount of shares.
Working orders can have different expiry dates, from same-day to good ‘til cancelled, which will remain open until you cancel it.
It’s important to review working orders regularly to make sure they’re still matched to your goals and market outlook.