Order Types and Execution: Rapid Fire
Chapters in this video
- 0:00 Market order versus limit order trade-off
- 1:42 Stop-limit sequence and execution risk
- 2:14 Stop orders on the wrong side of the market
- 2:55 Why triggered stop orders offer no price guarantee
- 3:46 FOK, IOC, and AON time-in-force distinctions
- 4:23 Not-held order versus discretionary trap
- 5:08 Trade shredding and firm rebate abuse
- 5:45 Circuit breakers, penny stock ceiling, and 10% uptick trigger
- 7:07 Rapid-fire exam recap
What this video covers
- Why a market order guarantees execution but not price, and why a limit order guarantees price but not execution
- How stop orders become market orders once triggered, while stop-limit orders become limit orders, adding execution risk
- Where buy limits, sell stops, sell limits, and buy stops sit relative to the market, and the memory aid that stops go on the wrong side
- When a not-held order is permitted versus when true discretionary authority and paperwork are required
- What fill-or-kill (FOK), immediate-or-cancel (IOC), and all-or-none (AON) each demand about immediacy and partial fills
- Why best execution is non-delegable, what factors firms must weigh beyond price, and when interpositioning is permissible
- How market-wide circuit breakers halt trading at 7%, 13%, and 20% declines; how the alternative uptick rule triggers at 10%; and why penny stock disclosure rules activate below $5
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