Orders and Strategies: Rapid Fire
Chapters in this video
- 0:00 Order types and triggers: market, limit, stop, and stop-limit
- 1:08 Where limits and stops live in the market
- 2:21 Time-in-force: day, GTC, IOC, FOK, and AON
- 4:07 Market posture: long risk capped, short risk unlimited
- 5:57 Trade capacity: broker commission versus dealer markup
- 7:53 Discretionary rules and the three A's
- 9:13 Rapid-fire one-breath exam recap
What this video covers
- When a market order sacrifices price control for speed, and when a limit order preserves price but risks non-execution
- Why a stop order does not guarantee a fill price: the trigger converts it to a market order, which can gap far below or above the stop
- Where each order type lives relative to the market: buy limit below, sell limit above, sell stop below, buy stop above
- The maximum loss math for long positions (100%) versus short positions (unlimited), and why short selling requires a margin account
- How to read trade capacity from compensation: commission means agency (broker), markup or markdown means principal (dealer)
- The three A's of discretionary authority (asset, action, amount), and why the time and price exception is not discretion
- Why solicited versus unsolicited determines RegBI and suitability obligations, and why mismarking a ticket is its own violation
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.