A market order requests execution at available prices. A limit order restricts the execution price but may remain unfilled. A stop order activates when its trigger is reached; the resulting execution depends on the order type and broker rules. A stop-limit combines a trigger with a limit and can fail to exit during a fast move.
Before placing an order, write down direction, size, entry condition, invalidation and expiry. Check whether the platform triggers against bid, ask or last price. A chart can display a different price stream from the one used for activation. Cancel stale pending orders when the original setup is no longer valid.
Worked example
A hypothetical buy limit at 100 will not accept a fill above 100, but does not promise any fill. A market buy prioritizes execution and may fill above the price seen on screen.
Check your understanding
Which is the main trade-off of a stop-limit used as an exit?
Show explanation
It restricts execution price but may leave the position open if the market moves through the limit.
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