Held Order

A held order is a type of order that is placed with a broker but not immediately executed. The order may be held for a variety of reasons, such as waiting for the stock to reach a certain price, or until there is enough volume to fill the order.

There are two main types of held orders:

* **Good-till-cancelled (GTC) orders** are held until they are either executed or cancelled by the investor.
* **Day orders** are held until the end of the trading day, at which point they are automatically cancelled if they have not been executed.

Held orders can be used to take advantage of market conditions or to protect against losses. For example, a buy stop order can be used to buy a stock if it rises above a certain price, while a sell stop order can be used to sell a stock if it falls below a certain price.

Held orders can also be used to limit the risk of loss. For example, a stop-loss order can be used to sell a stock if it falls below a certain price, thereby limiting the investor's losses.

It is important to understand the risks associated with held orders before using them. For example, GTC orders can be held indefinitely, which means that the investor could lose money if the stock price moves against them. Day orders, on the other hand, are only held until the end of the trading day, so the investor is less likely to lose money if the stock price moves against them.

Overall, held orders can be a useful tool for investors, but it is important to understand the risks involved before using them.