Order Types Used by Traders and Investors

Order Types Used by Traders and Investors - Market Order - Limit Orders - Stop Orders
These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. amzn.to/2WIoAL0
Check out our website www.onfinance.org/
Follow Patrick on twitter here: / patrickeboyle
If you are buying or selling financial products, when you use a market order, you are essentially just requesting the transaction to go through at the next available price.
Limit orders are another order type but they limit the price at which the stock is bought or sold. You can place a limit order so that it will buy below a set price or sell above a set price. The main downside of a limit order is that the trade may not go through if the price never gets to the limit you have set. You therefore need to keep on top of your limit orders to ensure it does get bought or sold.
The stop order orders the purchase or sale of a stock once it’s reached a certain price.
Buy stop orders are put above the current market price and a sell stop order below the current price, with the potential benefit of reducing your loss or protecting your profits.
You can also use a stop limit order, which releases a limit order once the stop price has been triggered.

[@conorosirideain5512]

A video(s) on alto trading would be AMAZING, I really hope you make one at some point! :) I’ve been binging your videos for the past few days and they are fantastic! A great supplement to my readings. Thanks for helping spread the knowledge.

[@PBoyle]

I have been thinking of doing something like that for a while, an explanation of high frequency trading. The struggle is to keep it as clear as possible, as you can start getting bogged down in describing market microstructure. Hopefully I will get something good out in the next few weeks.

[@samuelspencer5047]

Look at MIT opencourse on Finance, it is valuable.

[@kuca5411]

A video on algorithmic order types would be great

[@bounechedawahiba1795]

Thank you very Much for those videos, I d really appreciate if you could publish something about algorithmic orders.

[@samuelspencer5047]

Hello Patrick, I value your videos. We would benefit from an Algorithmic video.

[@andytolle4352]

Thank you Patrick

[@poohshmoo9892]

I think trailing orders are even more misunderstood than stop orders

[@jsdevtom]

What's the difference between a stop order and a market if touched order? You say: - "when a stop order is reached, a stop order becomes a market order." - " is an order to trade at the best available price if the market price first goes to the if touched level. As soon as this price is touched, this order becomes a market order. They sound the same to me.

[@benjaminvarga2874]

I also don't understand the difference, could somebody explain it?

[@225cadaveres]

Great content

[@marinabaskakova2333]

And what are the main risks of “stop orders” in a volatile market? Asking for a friend 😬

[@jayounglu3219]

usually you get FOMO when all the people are using market order to buy