Trading Applications: Rapid Fire

What this video covers

• Matching a bullish, bearish, or neutral outlook to long futures, short futures, or a spread position
• Why a directionally correct answer is still wrong when it ignores a client's stated risk limit, and how to check both coordinates
• Capping theoretically unlimited risk on a short futures position by substituting a long put, and why the worst case is then limited to the premium paid
• Using a long call as the limited-risk substitute for long futures when full directional exposure is not acceptable
• The two jobs orders do: initiating a position versus protecting it, and why market orders guarantee a fill but not a price while limit orders guarantee a price but may not fill
• Placing a protective stop on the losing side: sell stop below the market for a long, buy stop above the market for a short, with Good Till Canceled (GTC) duration
• Why a plain stop becomes a market order when triggered, exposing you to slippage, and why a stop-limit guarantees a price but may not fill in a gapping market
• Setting the protective stop at position entry, not after the market has moved against you