Working order definition
Working order
A working order is a term used for both stop-loss orders and take-profit orders, two order types that remain open on the market until their specified price is hit. The term ‘working’ order is used because unlike market orders which execute immediately, working orders stay open until end-of-day or good-till-canceled.
Types of working orders
There are two varieties of working orders:
- Stop-loss orders, which close your trade once the price hits a level less favorable than the current price, and meant to safeguard your trade from outsized losses
- Take-profit orders, which execute once the price reaches a more favorable level than the current market price in order to lock in the gains your trade has made