Stock Order Types on Bursa Malaysia: Market, Limit, GTC & Stop-Limit
Why You Must Understand Order Types Before Hitting "Buy"
Many new investors on Bursa Malaysia only know two buttons: Buy and Sell. They enter a quantity, hit submit, and hope the order matches. The problem is that behind those two buttons sit several different order types - and the wrong choice can leave you buying too high, selling too low, or with an order that never executes at all.
Understanding stock order types is not just technical trivia. It determines whether you control the price or the certainty of a transaction. Each order type has its place and time. In this article, we break down the four main categories you will encounter on platforms like M+ Global - Market Order, Limit Order, Stop/Stop-Limit Order, and order validity (Day, GTD, GTC) - and when to use each one.
Quick Answer: Which Order for Which Situation
If you only have 30 seconds, here is the fast summary:
- Market Order - when you want to get in or out immediately and are not too fussy about the exact price.
- Limit Order - when you want to control the price and are willing to wait until the price reaches the level you set.
- Stop / Stop-Limit Order - when you want an order to trigger automatically once the price touches a certain level (for a stop-loss or breakout entry).
- GTC / GTD - these are not price types, but the validity period that keeps your order active in the market for several days rather than expiring at the end of the day.
Now let us break each one down with real examples.
What an "Order" Means in Share Trading
An order is the instruction you send to your broker to buy or sell a share under specific conditions. Bursa Malaysia runs an order-driven system - meaning all buyer and seller orders are arranged in a single "order book" and matched automatically based on price and time priority.
Two things you control in every order are the price (the price at which you are willing to transact) and the validity period (how long the order stays active). The order type determines the combination of these two elements. For the full buying process from the start, see our guide on how to buy shares on Bursa Malaysia via the M+ Global app.
Market Order: Fast but Price Is Not Guaranteed
A market order is an instruction to buy or sell immediately at the best available price in the market at that moment. You do not set a price - you simply say "I want to buy 1,000 units now, at whatever the best available price is".
When to use a Market Order
- When certainty of execution matters more than a few cents of price difference.
- For highly liquid stocks (plenty of buyers and sellers) such as Maybank or CIMB, where the spread between bid and ask is very tight.
- When you need to exit a position quickly, for example when bad news breaks and you do not want to risk the price falling further.
The risk of a Market Order: Slippage
The main danger of a market order is slippage - the actual price you get differs from the price you saw on screen. This happens especially with thin (illiquid) stocks or when the market is moving fast. Example: you see an ask price of RM1.00, but your large order "eats" all the units at RM1.00, then RM1.01, RM1.02, until your average purchase price becomes RM1.015. For penny stocks or small counters, slippage can be far worse.
Practical example: You want to buy 5,000 units of stock XYZ that is rarely traded. The order book only has 1,000 units at RM0.50, 1,000 units at RM0.53, and so on. Your market order will be swept upward until the average cost is much higher than the RM0.50 you expected.
Limit Order: You Set the Price
A limit order lets you set a maximum price to buy or a minimum price to sell. The order will only execute at your set price or better. As explained by Asri Ahmad Academy, this is the order type most used by disciplined investors because it eliminates slippage risk.
When to use a Limit Order
- When you have a clear target price - for example: "I only want to buy if the price drops to RM2.50".
- For less liquid stocks where the spread is wide and a market order risks high slippage.
- When you do not want to sit in front of the screen - place a limit order and let the market come to you.
- For averaging down or buying in stages across several price levels.
The risk of a Limit Order: No Match
The weakness of a limit order is that there is no guarantee it will execute. If the price never touches your set level, your order stays pending and simply does not match. There are also situations where the price touches your level but the order still does not match because you are at the back of the queue in the order book. We have written at length about this in our article on why your buy order does not match even after you hit Buy.
Market Order vs Limit Order: A Quick Comparison
This is the most basic decision you make every time you trade. The summary:
- Market order = prioritise certainty of execution, sacrifice price control.
- Limit order = prioritise price control, sacrifice execution certainty.
For most long-term investors buying liquid blue chip stocks, a limit order at or slightly below the current price is the safest choice. For short-term traders who need to move in and out quickly on liquid stocks, a market order is more practical.
Stop Order & Stop-Limit Order: Orders That Trigger Automatically
A stop order (sometimes called a stop-loss order) is an order that stays inactive until the price touches the trigger price you set. Once the price hits that level, the order activates automatically. This is a vital risk-management tool - you do not need to watch the screen all the time.
Stop Order (Stop-Market)
When the trigger price is touched, the order turns into a market order and executes at the best available price. Its advantage: it is almost certain to execute. Its weakness: it is subject to slippage, especially when the price is falling fast.
Stop-Limit Order
This combines a stop and a limit. You set two prices: the trigger price (stop price) and the limit price. When the price touches the trigger level, the order turns into a limit order at the limit price you set. Its advantage: you control the execution price. Its weakness: if the price plunges past your limit level, the order may not execute at all and you stay stuck in the position.
When to use Stop / Stop-Limit
- Stop-loss: place a stop below your purchase price to cap your loss if the stock falls. This concept is closely tied to stop loss and position sizing to protect your capital.
- Breakout entry: place a stop-buy above a resistance level so you only enter if the price genuinely breaks through it.
- Locking in profit (trailing stop): raise your stop level as the price moves to protect unrealised gains.
Important note: Not all retail brokers on Bursa offer stop orders for every counter, and some platforms only activate stop orders during market hours. Check the functions available on your platform before relying on them fully.
Order Validity: Day, GTD & GTC
Besides price, every order has a validity period - how long it stays active in the order book. This is the part most new investors overlook. According to official information from Bursa Malaysia on order types, there are several validity options:
Day Order
The order is valid for that trading day only. If it does not match before the market closes, the order is cancelled automatically. This is the default setting on most platforms.
Good Till Date (GTD)
The order stays active until the expiry date you set, if it does not match before then. On Bursa Malaysia, the expiry date must fall within 30 calendar days (excluding the entry day). Unmatched orders carry over to the next trading day automatically.
Good Till Cancel (GTC)
The order stays active until it is fully matched or you cancel it yourself. But there is one important thing many investors misunderstand: on Bursa Malaysia, GTC does not last forever. It is capped at a maximum of 30 calendar days. This differs from the US market where GTC can last longer (some brokers up to 90 days or more). So if you are used to trading US stocks, do not assume GTC on Bursa works the same way.
GTD and GTC are extremely useful for long-term limit orders - for example, you only want to buy a stock if the price drops 10%, so you place a GTC limit order and let it wait up to 30 days without re-entering it every day.
FAK & FOK: Orders for Advanced Traders
Two advanced order types you may come across are:
- Fill and Kill (FAK): the order tries to match immediately for as much as possible, and the remaining unmatched balance is cancelled. Useful when you want what is available right now without leaving a pending order.
- Fill or Kill (FOK): the order must be matched fully and immediately, or it is cancelled outright. No partial execution. An FOK order is not placed into the order book queue at all.
Both are more relevant to institutional traders or those dealing in large quantities who want to avoid partial fills. Ordinary investors rarely use them.
When to Use Which: A Decision Guide
Here is an easy way to choose an order by your objective:
- "I want to enter now, liquid stock" - Market Order (Day).
- "I only want to buy at a certain price" - Limit Order (Day, or GTD/GTC if you want to wait several days).
- "I want to cap my loss if the stock falls" - Stop-Loss (Stop or Stop-Limit).
- "I only want to enter if a breakout happens" - Stop-Buy Order.
- "I want my order to last several days" - set the validity to GTD or GTC.
- "Thin stock, I am afraid of slippage" - Limit Order, avoid Market Order.
The golden principle: use a Market Order only for liquid stocks, and a Limit Order for everything else. For risk management, get comfortable with stop-losses early - it is what separates disciplined investors from those relying on luck.
Common Mistakes Around Order Types
- Using a market order on a thin stock - then being shocked when the average purchase price is far higher than the on-screen price.
- Forgetting the order validity - placing a limit order as a Day order, then wondering why the order "disappeared" the next day (it actually expired at the end of the day).
- Assuming GTC lasts forever - on Bursa it expires after 30 calendar days.
- Setting a stop-limit with too tight a gap - the price plunges past the limit level, the order does not match, and you are still stuck in a losing position.
- Not understanding queue priority - thinking that because the price touched your level it must match, when there are still many ahead of you in the queue. Read more on how to read order flow in stocks.
Frequently Asked Questions (FAQ)
What is the difference between a market order and a limit order?
A market order executes immediately at the best current price with no guarantee of an exact price, while a limit order only executes at your set price or better, but with no guarantee it will match.
How long is a GTC order valid on Bursa Malaysia?
A GTC (Good Till Cancel) order on Bursa Malaysia is valid for a maximum of 30 calendar days, or until it is fully matched or you cancel it. It does not last forever as it does in some overseas markets.
What is a stop-limit order and when should I use it?
A stop-limit order triggers when the price touches the trigger level, then turns into a limit order at the limit price you set. It suits a stop-loss or breakout entry when you want to control the execution price, but it risks not matching if the price moves too fast.
Why does my limit order not match even when the price touched my level?
This is usually due to queue priority - other orders were placed earlier at the same price, so they match first. The trading volume at that price may also be insufficient to reach your order's turn.
Which order type suits long-term investors best?
A limit order suits long-term investors best because it gives full control over the purchase price and avoids slippage. Combine it with a GTD/GTC validity to buy at your target price without entering the order every day.
Do all Bursa brokers offer stop orders?
Not all retail platforms offer stop orders for every counter, and some only work during market hours. Check the features available in your trading app before relying on them for risk management.
What is a Day order?
A Day order is an order valid for that trading day only. If it does not match before the market closes, it is cancelled automatically. This is the default setting on most trading platforms.
Conclusion
Mastering order types is a fundamental skill that separates investors who control their transactions from those who merely "hit Buy and hope". Remember the principle: Market Order for speed on liquid stocks, Limit Order for price control, Stop/Stop-Limit for automatic risk management, and validity (Day/GTD/GTC) to control how long your order stays alive.
The next step after understanding this theory is to practise it on a real platform with your own trading account.
To start investing, you need a CDS and trading account that lets you invest on Bursa Malaysia as well as foreign stocks such as the US and Hong Kong markets.
If you are just starting out, download our free stock investing basics ebook to build a solid foundation before placing your first order.