Types of Orders

What this video covers

• Why a market order guarantees execution but not price, and what slippage means in a fast-moving market
• How a limit order guarantees price but not execution, and why buy limits sit below the market while sell limits sit above
• The two-step trigger process of a stop order, and why it becomes a market order with no price guarantee once activated
• Where sell stops and buy stops are placed relative to market price, and how stop orders sit on the "wrong side" compared to limit orders
• How a stop-limit order contains both a trigger price and a limit price, and why it avoids price risk but introduces execution risk
• Which order gets you out of a crashing position when prices gap past all stated levels: plain stop versus stop-limit
• The master placement table: which orders live above the market, which live below, and the forced trade-off between price guarantee and execution guarantee