Stop Orders

What this video covers

• The four-step lifecycle of a stop order: resting dormant, triggered by a trade at or through the stop price, waking up as a market order, then filling at the next available price
• Why a plain stop order guarantees execution once triggered, but does not guarantee the stop price itself, and what slippage means in a fast or gapping market
• The critical distinction between a stop order (no limit, forces a fill) and a limit order (price protection, may miss entirely)
• Buy stop placement above the market, and the two roles it plays: protecting a short position or entering a new long on an upside breakout
• Sell stop placement below the market, and the two roles it plays: protecting a long position as a stop-loss or entering a new short on a downside breakdown
• The side-by-side comparison table: buy stop versus sell stop, placement, trigger direction, protection purpose, and entry purpose
• Why the shared word "sell" across a sell stop and a sell limit creates a sneaky exam trap, since their placement and trigger logic are opposite