Requirements for creating an order
Let’s start with some basic information required for orders, and work our way up from there. Fundamentally, an order is pretty simple. You just want to buy or sell some type of investment product. Let’s break it down.
This isn’t an exhaustive list, as it will depend on your broker and local regulations, which are always subject to change, yet you would likely require, at least, the following:
- Transaction type: We would require at least buy and sell order types, but in certain scenarios, a switch would be helpful, which just means we change from one equivalent product to another as opposed to cashing out.
- Order type: The two main order types supported by brokers are called limit orders and market orders. Robo-advisors always use market orders, so we don’t need to track this per order.
- Product: What are you buying? In our case, it’s not just one product ticker, but a whole portfolio at a time. This...
