An above the market order is a request to buy or sell a security above its current price. This type of order is utilized for both short and long positions. This order type can be used to both initiate and exit positions.
A below the market order is a request to buy or sell a security below its current price. This type of order is utilized for both short and long positions. It can also be used to both initiate and exit positions.
A day order is a buy or sell instruction to a broker that are valid for one trading day. Day orders are the default order type for most trading platforms and are the most common order type.
A direct access broker is a firm that provides their clients direct access to the exchanges via electronic communication networks (ECN). Direct access brokers focus more on the trading platform and order execution.
The easy-to-borrow list is the securities which are available for short selling activities. In order for a stock to be on the easy-to-borrow list, the security must have a large number of outstanding shares in order to assure there will be stock on hand to handle the short position.
An electronic communication network, or ECN, is an order matching platform which connects investors directly to brokerage houses, rather than processing trades through a middle man.
