To invest in stocks effectively, investors must master Types of stock orders such as LO, MP, ATO, ATC, PLO. Understanding how to place trading orders will help you make trading easier and increase your chances of making a profit. Investors must choose one of the following order types: LO, MP, ATO, ATC, PLO to place orders to buy and sell securities, depending on their needs and trading time.
1. Opening order matching (ATO)
ATO order (At the Open) is a type of securities trading order executed at the matching price determined at the opening time of the trading session, specifically applicable only to the Ho Chi Minh City Stock Exchange. This order can be entered into the system before or during the periodic matching session to determine the opening price. After the clock strikes 9:15, the ATO order will not be executed or any part of it that remains unmatched will be automatically canceled.
During the securities order matching process, ATO orders take precedence over limit orders. If there is only an ATO order on the order book, the matching price determined at the opening time will not be applied.
ATO Buy Sell Order entered into the trading system to determine the opening price during the normal order matching process. If the order cannot be executed or is not fully executed, it will be automatically canceled after the opening price is determined.
During the order matching process, ATO order has priority over limit orders. However, if there is only an ATO order and no limit order, the opening price will not be determined.
2. HSX Market Order (MP)
Market Order (MP) On the Ho Chi Minh City Stock Exchange, an order to buy securities at the lowest selling price or to sell securities at the highest price currently available on the market. In other words, this is an order where the slowest buyer or seller transacts at any price.
In case the MP order is not filled in full, it will be treated as a buy order at a higher ask price or a sell order at a lower ask price than the next available order in the market. If after applying this principle there is still an unfilled volume, the MP order will be converted to a limit order. In case the final execution price reaches the ceiling price (for buy orders) or the floor price (for sell orders), the MP order will be converted to a LO order to buy at the ceiling price or a LO order to sell at the floor price.
MP orders can only be entered into the system during consecutive trading sessions. If no corresponding LO order is found at the time of order entry, the MP order will be canceled.
On the Hanoi Stock Exchange, the concept of market orders is interpreted similarly to that on the Ho Chi Minh City Stock Exchange, however, there are differences in the types of orders. Specifically:
- Market Limit Order (MTL): If the entire volume cannot be filled, the remaining portion will be converted to a LO order and subject to the LO order modification or cancellation rules.
- Market order fill all or cancel (MOK): If the entire volume cannot be filled, the order will be canceled immediately after being entered into the system.
- Market to Match and Cancel (MAK) Order: This is an order that can be executed or canceled in whole or in part, with the remainder being canceled immediately after the order is matched.
3. HNX market order
Market order on the HNX stock exchange are buy orders at the lowest offer price or sell orders at the highest bid price available on the market in consecutive pairing sessions. There are three types HNX market order as follows:
- MAK Order: This is an order that is likely to be filled in full or in part, and the remaining orders will be canceled immediately after the transaction is executed.
- MOK Order: This is an order that will be canceled immediately upon entering the system if the full volume is not executed.
- MTL orders: These are orders that can be executed in full or in part, and the remaining orders will be converted to LO (limit orders) after the trade is executed.
4. Limit Order (LO)
Limit Order (LO) is an order to buy or sell securities at a specified price or better and is the most common type of order used by investors. LO orders are applied to 2 stock exchanges: Ho Chi Minh City Stock Exchange (HSX) and Hanoi Stock Exchange (HNX).
Characteristic LO command:
- Limit orders are executed throughout the trading session, except for negotiated transactions after 14:45, and for UPCOM, this order can be executed until 15:00.
- If you place a LO stock order before the trading session or during lunch break, the order will be in pending status.
- When the trading session starts, the system will notify the order is valid.
- LO orders are effective from the time they are entered into the system until the end of the trading day or when the order is canceled.
5. Pending Order/Conditional Order
Conditional command is an important feature that helps investors buy and sell securities flexibly, especially for investors who do not have time to continuously monitor the market. There are many types of Pending order as follows:
- Conditional command with time (TCO Order): Investors can place orders one to several days before the trading session with a specified quantity and price. This order has a maximum validity period of 30 days. Orders can be placed at any time and are pending in the securities company's system until the conditions are met. Investors can choose the order matching type to occur once or occur until the entire volume is matched.
- Buy or Sell Order (PRO Order): This is an order where the investor is willing to buy at ATO/ceiling/ATC prices and is willing to sell at ATO/floor/ATC prices. This order is valid for the next trading session after being placed and can be placed in advance for up to 30 trading days.
- Stop order (ST Order): An order in which the investor determines in advance the price to stop loss or take profit in the future. This order takes effect immediately upon placement and lasts for 30 days.
- Trend orders (TS Order): The investor selects the stock code and the volume he wants to trade, plus a stop according to the absolute value or relative value. In addition, the investor can set a minimum buy price or a maximum sell price. When the stock price reaches the stop or the set price, the order will be activated. Similar to other types of conditional orders, the trend order is valid for 30 days.
6. Closing price stock order matching transaction (ATC)
ATC command, similar to the ATO order, is used to determine the closing price at 14:45 on both the Ho Chi Minh City and Hanoi exchanges.
Characteristics of ATC command:
- ATC stock trading orders are valid from 14:30 to 14:45. After this time, if the order is not matched or not executed, the system will automatically cancel it.
- ATC orders have priority over LO orders during order matching.
- In case there is only ATC order in the order book, the matching price cannot be determined when the periodic matching session to determine the closing price comes.
7. After-hours stock orders (PLO)
After Hours Order Matching (PLO) Only applicable to Hanoi Stock Exchange. This is an order to buy or sell securities at the closing price after the end of the ATC session. Investors can only enter this order into the system between 14:45 and 15:00, and if there is a corresponding order ready, the order will be matched immediately. PLO orders will be automatically canceled if not executed or not fully executed.
Characteristics of PLO order:
- In case the periodic order matching session does not determine the closing price, the PLO order will not be entered into the system.
- An order to buy or sell a security at the closing price. During execution, ATC orders take precedence over limit orders.
- If there are only ATC orders on the order book, the regular order matching session will not determine the order matching price.
- If the order is not executed or not fully executed, the order will be automatically canceled after the session ends.
8. Points to note when placing stock orders
Important points to note in stock trading hours help investors maximize opportunities and avoid unwanted risks. Each stock exchange usually operates in 3 different sessions, but the time of each session is not the same. When entering this market, understanding the stock trading hours is important to be able to make how to buy stocks correctly and optimize profits. Here are some points to note:
- Each trading session will have its own order types that apply to the securities you can trade. However, limit orders can be placed at any time during trading hours.
- Trading times for stocks vary by asset class, so it’s important to understand this to avoid less-than-ideal times like weekends or the end of the day, which can cause price volatility or cash flow constraints. For example, the settlement time for stocks is typically one to two days after purchase.
- Exchanges in Vietnam usually have a difference of about 15 minutes between trading hours.
- Each trading time frame will have different types of orders and the priority order is also predetermined.
To become a successful stock investor, it is important to understand stock order is extremely important. Hope your information OnStocks Securities will help you grasp the stock trading time of each floor and Order matching method in Vietnam.
Source: Onstocks
