Order Types and Execution: Rapid Fire
Chapters in this video
- 0:00 Market order vs. limit order: the core trade-off
- 0:57 Stop orders: trigger price, then live market order
- 2:56 Buy limits and sell stops below, sell limits and buy stops above
- 3:42 FOK, IOC, and AON: impatient, flexible, and patient fills
- 4:42 Best execution, not-held orders, and what the exam traps
- 5:47 The big number breakdown: circuit breakers, penny stocks, T+2, T+4
- 7:21 Rapid-fire exam recap
What this video covers
- How a market order guarantees execution but not price, and how limit orders flip that trade-off
- Why a triggered stop order becomes a market order and offers no price protection in a gapped market
- Where buy limits, sell stops, sell limits, and buy stops sit relative to the current market price
- The difference between fill-or-kill (FOK), immediate-or-cancel (IOC), and all-or-none (AON) time-in-force instructions
- Why best execution weighs speed and likelihood of execution alongside price, and why the duty is non-delegable
- How a not-held order differs from discretionary authority (the customer still picks the asset, action, and amount)
- The circuit breaker percentages (7%, 13%, 20%), penny stock threshold ($5), and Regulation SHO close-out timelines (T+2 for shorts, T+4 for longs)
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