Types of Orders
Chapters in this video
- 0:00 Limit orders: Carla the stubborn haggler
- 1:41 Market orders: speed versus slippage
- 2:41 The market seesaw: execution versus price guarantee
- 3:08 Stop orders: the wrong-side emergency ripcord
- 4:35 Stop-limit orders: price protection with execution risk
- 5:48 Ultimate mental cheat sheet for order placement
- 6:08 Rapid-fire exam recap
What this video covers
- Why a market order guarantees execution but not price, and why slippage makes that dangerous in volatile markets
- How a limit order guarantees price but not execution, and exactly where buy limits and sell limits sit relative to the market
- The two-step trigger-then-market process of a plain stop order, and why it delivers no price guarantee after triggering
- Where sell stops and buy stops are placed relative to the market, and which position each protects
- How a stop-limit order becomes a limit order after triggering, trading execution certainty for price control
- Why a stop-limit can leave you completely unfilled in a fast or gapped market
- The single filtering question that eliminates distractors: does the customer need price guarantee or execution guarantee
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