Evolution of the Order?

Order types?

We've got quite a few different types of order, have these always been around, if not, since when?

What is the aim of different order types?

The markets have obeyed certain principles since their beginning, order types seem like a convenience, are they brought about for the sake of streamlining employee figures?

Any thoughts?

Liquidity?

Paul,

I reckon it's down to efficiency, greater flexibility and opportunity to control risk, necessity given the ever increasing speed of trading, and instantaneous transmission of international news related to the markets. No more leisurely cups of tea with your broker discussing when to buy or sell.

Grant.

In consumer markets diversification of products happens for a couple of obvious reasons: to provide the marketer clever differentiation from his competition and more recently because people discovered that if you offer someone 10 different deserts the girls and boys will eat more than if you only offer 5.


So, initially some brokers could show how much better they were for you than others because they offered better order types. Don't you IB customers like it that they will simulate the full range of orders on their servers even if the exchange only offers a couple of types natively?

And I wonder if some discovered that if you offer a trader 10 different order types then they order twice as often as if you only let them have market orders? And that's more commissions ... yeah!!!


Just a cynics (realists) view