Order types explained simply: What matters in a stock exchange order

A stock exchange order sets the price and the period for which a purchase or sale should apply. Order types can limit the price or give priority to execution, but not both at once. Four common order types on the Swiss stock exchange are the market order, the limit order, the stop loss and the stop limit. Data as of: 29 October 2026.

How an order meets a matching counter-offer in the order book (the list of open buy and sell orders) is explained in the article on the bid-ask spread. This article is about the choice in the order form.

Order types at a glance: price or execution

SIX calls a market order «unlimited» and an order with a price limit «limited». Banks and brokers do not name orders consistently. SIX calls the market order «unlimited» or «Bestens» (German for «at best»), while other providers use «market order»; the limited order is often simply called a «limit order». What counts is what lies behind the name.

The table shows that where the price is limited, execution may not happen. Where execution takes priority, the price is open.

How do market orders and limit orders work?

The market order is the simplest form. It is meant to be executed immediately, and the price is determined by the market. According to SIX, execution is very likely, but the price is not fixed. For highly volatile or thinly traded securities, the price can, according to SIX, differ noticeably from the last price displayed.

With a limit order, the price limit determines what happens. A freely chosen numerical example for illustration, not market data: anyone who wants to buy at a limit of CHF 38 when the price is CHF 40 will only buy at 38 or lower. If the price does not reach this level, the order remains open or expires unexecuted. If a counterparty can be found for only part of the quantity, only that part may be traded.

Stop orders: the trigger counts

A stop order initially sits outside the order book. Only when the price reaches the trigger does the exchange enter it. It is often used for sales to limit a loss. That outcome is not guaranteed. Purchases are also possible, in which case the trigger lies above the current price.

According to a SIX document from 2023, orders are triggered by traded prices, meaning trades that were actually concluded. In auctions, orders are collected and executed at a single price. In that case, the auction price counts. For ETFs (exchange-traded funds), ETPs (exchange-traded products) and structured products (investment products issued by banks), quotes from market makers can also trigger orders during continuous trading (market makers are traders who continuously quote buying and selling prices).

SIX has offered stop loss and stop limit as orders for retail investors since 15 May 2023. The SIX example: the trigger is at CHF 21 and the limit of a sale at CHF 20.50. If no buyer can be found at 20.50 or above, the order remains open and expires at the end of its validity. According to SIX, a stop limit allows the price to be controlled, but at the risk of non-execution.

Some banks and brokers also offer a trailing stop. Here the trigger follows the price. Whether this type is available is shown in the order form.

How long does an order remain valid?

The validity determines how long an order stays open. According to SIX, there are three variants:

• GFD (good-for-day): valid for the day.
• GTD (good-till-date): valid until a chosen date.
• GTC (good-till-cancelled): valid until execution or cancellation.

According to a SIX document from 2023, SIX supports validity until a date for stop orders. Which validities a bank offers is shown in its form. A forgotten open order can still be executed later, as long as it remains valid.

There are also two additions. With fill-or-kill (FOK), the order is executed in full immediately, or not at all. With immediate-or-cancel (IOC), any unexecuted remaining quantity expires immediately. According to SIX, availability depends on the e-banking platform or broker.

The bank's order form

An order form in e-banking asks for several details. Names and order of the fields vary by provider. The table shows a completed example.

Trading venue and hours (fields 1 and 6): The trading venue is where the order is executed. Some providers let investors choose it, for example SIX or another venue. On SIX, equity trading starts at 9:00 with an opening auction, which can vary randomly by up to two minutes. The closing auction for equities ends at around 17:30. After that, trading at the closing price runs until around 17:40. Other segments, such as ETFs, have their own hours.

Quantity (field 3): The number of units is usual. Some providers also allow an amount.

Currency (field 7): If the security is not denominated in Swiss francs, the bank converts the amount. What this costs varies by provider. Where a product is traded is stated in the factsheet, as the article on how to read a factsheet shows.

Price gap and open orders in a numerical example

The following example shows how the orders differ as soon as the price jumps. It is freely chosen and ignores costs.

For a historical price jump in currencies, see the article on the Swiss franc shock of 2015.

Risks and limitations

• Losses: Securities can lose value. No order type prevents this.
• Market order: The price is not fixed and can differ noticeably from the displayed price for highly volatile or thinly traded securities.
• Limit order: The order can remain open or expire unexecuted.
• Stop loss: In a price gap, the sale can take place well below the trigger, as in the example.
• Stop limit: The price is limited, but the sale may not happen and the loss can keep growing.
• Trigger: A trigger set close to the current price can be activated by ordinary fluctuations.
• Forgotten orders: Open orders can still be executed until the end of their validity.
• Availability and rules: Names, additions and validities vary between banks, brokers and exchanges.

Conclusion

Order types either fix the price or aim for execution. With a market order, and with a stop loss once triggered, the price is not fixed; price and execution can never both be assured. Limit orders and stop limits set a price limit but may remain unexecuted. In the example, a jump in the price means that the stop loss sells at CHF 34 and the stop limit remains open. The validity decides how long an order can still be executed.