Advanced Order Types

Beyond basic market orders, advanced order types can significantly improve your trading.

Basic Order Review

Market Order

• Execute immediately at current price
• Guaranteed fill, not price
• Use when speed matters
• Watch for slippage

Limit Order

• Execute at specific price or better
• Buy limits below market
• Sell limits above market
• May not fill if price does not reach

Stop Order

• Becomes market order when triggered
• Buy stops above market (breakouts)
• Sell stops below market (breakdowns)
• Used for entries and stop losses

Advanced Order Types

Stop Limit Order

• Stop order with a limit price
• Combines stop trigger with limit execution
• Avoids extreme slippage
• Risk: May not fill in fast markets

Trailing Stop

• Stop that follows price
• Locks in profits as price moves
• Set by pips or percentage
• Great for trend following

OCO (One Cancels Other)

• Two orders linked together
• When one fills, other cancels
• Perfect for breakout strategies
• Entry above AND below range

Strategic Applications

Breakout Trading

• Buy stop above resistance
• Sell stop below support
• OCO for range breakouts
• Let market come to you

Scale Out Strategy

• Partial take profits at levels
• TP1: 50% position
• TP2: 30% position
• Runner: 20% with trailing stop

Execution Best Practices

Pre-Planning

1. Know your entry, stop, and target before
2. Calculate position size in advance
3. Set up orders before market reaches level
4. Avoid emotional execution

Order Management

• Check orders daily
• Cancel outdated orders
• Adjust stops as trade develops
• Do not over-manage