At-or-better, also written as At or better, refers to orders executed at a specific price, or more than that. At or better orders are a variation of limit orders. Limit orders also set a limit on the price at which the order would be executed. When you place an at or better order, you are implying that you are looking for a breakthrough or are willing to go to the next level.
What Is the Definition of At or Better?
The simplest definition of At or better is hidden in the term itself. It means orders would be executed either At a particular price or at a price Better than that. In trading terminology, it is known as a type of limit order.
At or Better
In contrast to market orders, at-or-better orders are a type of limit order. When initiating a long position in a particular stock, market orders are the ideal option since they are executed faster than limit orders. They are also the correct option if you want to trade as early as possible without worrying about a certain price. Although market orders are less expensive than limit orders, they do not ensure a price. With the introduction of high-speed trading, ordinary investors must be aware of the various sorts of trades available to them, ranging from all-or-none to at-or-better orders.
How Does an At or Better Order Work?
Placing At or better orders has never been easier because of technological advancements. It is also crucial to grasp how it works for the same reason. To put it another way, at or better orders are those that are executed at or above a specified price. Limit orders have the disadvantage of taking longer to execute and might not be completed due to their precise price conditions. As a result, many traders consider At or Better trading to be a preferable option. However, whether you should go this route or not is dependent on several personal factors.
Examples of At or Better Orders
Stop orders are frequently used to turn limit orders to market orders. When a stock price reaches the price you specify, the order becomes a market order, which means it will be filled at the next open price.
The stop-limit order is a variation of the stop order. For instance, a trader can place a stop-limit order with a $25 stop price as well as a $23 limit price. When the price reaches the $25 stop price, the order would become a limit order which will not be executed until the price falls to the $23 share price.
What to Know When Placing at Or Better Orders?
Before you place any At or Better orders, you must understand the risks and possibilities involved. You can consider reaching out to a trading consultant or learning from the resources available. It is never a good idea to make a move in the trading market without being completely sure about it.
At or better orders are an important type of order that every trader must know about. We hope our guide will acquaint you with the basics of it.