Order types explained

Order Types Explained

MANSHUR offers two order types: Market Orders and Limit Orders. Understanding when to use each can improve your trading results.

Market Orders

A market order executes immediately at the best available price.

When to Use

• You want to trade right now
• Speed is more important than price
• The market is liquid (tight spread)

How It Works

1. You submit a market order to buy 100 YES shares
2. The order matches against the best available sellers
3. Trade executes instantly at current market price

Pros

✅ Guaranteed execution ✅ Simple and fast ✅ Best for small orders

Cons

❌ No price control ❌ May experience slippage on large orders ❌ Can be expensive in thin markets

Example

Order Book (Sellers):

• 50 shares @ 59¢
• 100 shares @ 60¢
• 200 shares @ 61¢

Your Order: Buy 100 shares at market

Execution:

• 50 shares filled @ 59¢ = $29.50
• 50 shares filled @ 60¢ = $30.00
• Total: $59.50 (average: 59.5¢/share)

Limit Orders

A limit order executes only at your specified price or better.

When to Use

• You want a specific price
• You're willing to wait for the price
• You're trading larger amounts

How It Works

1. You submit a limit order to buy 100 YES shares at 55¢
2. The order is placed in the order book
3. It only fills if sellers offer 55¢ or less

Pros

✅ Price control - never pay more than your limit ✅ No slippage ✅ Can get better prices than market orders

Cons

❌ May not execute if price doesn't reach your limit ❌ Partial fills possible ❌ Requires patience

Example

Current Price: YES at 58¢

Your Order: Buy 100 shares at limit 55¢

Scenario A: Price drops to 55¢

• Your order fills at 55¢
• You save 3¢ per share vs market order

Scenario B: Price stays above 55¢

• Your order doesn't fill
• You miss the trade

Choosing the Right Order Type

Advanced: Time-in-Force

Limit orders can have different time-in-force settings:

Good Till Cancelled (GTC)

Order stays active until filled or you cancel it.

• Stays in order book indefinitely
• Good for patient traders

Day Order

Order expires at end of trading day (midnight UTC).

• Auto-cancels if not filled
• Good for specific trading sessions

Fill or Kill (FOK)

Order must fill completely immediately, or cancels entirely.

• All or nothing
• Good for specific trade sizes

Immediate or Cancel (IOC)

Fills what's available immediately, cancels the rest.

• Partial fills allowed
• Good for taking available liquidity

Order Status

Track your orders in Portfolio → Orders:

Cancelling Orders

To cancel an open order:

1. Go to Portfolio → Orders
2. Find the open order
3. Click Cancel
4. Confirm cancellation

Cancelled orders have no cost - you only pay when orders fill.

Price Improvement

Sometimes you get a better price than expected:

Your limit order: Buy at 58¢ Available seller: Selling at 56¢ You pay: 56¢ (2¢ better than your limit!)

MANSHUR always fills at the best available price, even if better than your limit.

Tips for Better Execution

For Market Orders

• Check the order book before submitting
• Trade during high-volume periods
• Use for small, time-sensitive trades

For Limit Orders

• Set realistic limits based on recent prices
• Be patient - good prices take time
• Adjust limits if market moves away from you

General

• Start with market orders until comfortable
• Use limit orders as you gain experience
• Monitor order book depth before trading

Key Takeaways

1. Market orders execute immediately at current price
2. Limit orders execute only at your price or better
3. Market orders guarantee fills but not price
4. Limit orders guarantee price but not fills
5. Large orders benefit from limit orders
6. Small orders can use market orders safely