Order Types and Execution: Rapid Fire
Chapters in this video
- 0:00 Market order versus limit order: the core trade-off
- 1:22 Stop orders on the wrong side of the market
- 2:33 FOK, IOC, and AON time-in-force modifiers
- 3:04 Best execution: price, speed, likelihood, and total cost
- 3:38 Short sale locates and penny stock disclosure
- 4:33 Market-wide circuit breakers: 7%, 13%, and 20% halts
- 5:44 Limit up-limit down and the alternative uptick rule
- 6:30 T+2 versus T+4 settlement failure closeouts
- 7:23 Not-held orders and the three A's test
- 7:58 Rapid-fire exam recap
What this video covers
- The core trade-off between market orders (execution certainty, no price guarantee) and limit orders (price certainty, no execution guarantee)
- Why stop orders become market orders once triggered, the gap risk that follows, and when stop-limit orders add protection
- The exact placement of buy limits, sell limits, buy stops, and sell stops relative to the current market price
- How fill-or-kill (FOK), immediate-or-cancel (IOC), and all-or-none (AON) differ on immediacy and partial-fill acceptance
- What best execution requires beyond price, why it is non-delegable, and when payment for order flow triggers heightened scrutiny
- Short sale locate timing (before execution, not after), Regulation SHO closeout rules at T+2 for short fails versus T+4 for long or market-maker fails
- Market-wide circuit breaker levels at 7%, 13%, and 20%, their 15-minute halt durations, and how limit up-limit down (LULD) differs by halting individual stocks on moves in both directions
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.
Start on this site: free Series 7 practice questions · Series 7 pass rate