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3. Trading orders
Market and Limit
A market order prioritises immediate execution against available liquidity. Its execution price is not guaranteed in advance. A trading halt, venue restrictions or insufficient liquidity can also prevent execution. "Buy now" does not mean "buy at the last candle's price".
A limit buy specifies the maximum price; a limit sell specifies the minimum. This controls price but does not guarantee execution. A chart touching a level does not prove that the entire order filled: queues, limited opposing volume and partial fills exist.
Time-in-force conditions such as GTC, IOC and FOK determine what happens to an unfilled remainder. Available choices depend on the venue. For an initial practice exercise, it is enough to understand that an order can remain in the book, fill partially or be cancelled.
Conditional orders
After its trigger is reached, a stop-market submits a market order. A stop-limit submits a limit order. The latter controls the worst acceptable price, but it may remain unfilled during a sharp move. Do not treat a stop-limit as guaranteed insurance.
Stop-Loss describes the objective of limiting a loss; Take-Profit describes the objective of realising a result. Either may use market or limit execution. Check the trigger separately: Last Price, Mark Price or Index Price. Different price series can reach a level at different times.
For a long, the protective stop is usually below entry and the target above; for a short, the reverse applies. If a stop is mistakenly placed on the wrong side, the platform may reject it or activate it immediately. After a partial exit, check the remaining position and the quantity in the protective order.
Examining execution
Example. An asset is bought at 100 with a planned stop at 98. During a sharp decline, the stop-market triggers at 98, but the actual average sale occurs at 97.6. The gross loss per unit is 2.4, not 2. Estimating risk from the stop is useful, but it is not an upper limit on every possible loss.
For a stop-limit with a trigger of 98 and a sell limit of 97.9, price may jump directly to 97.5. The order remains waiting for a suitable buyer. Tighter control over execution price can leave a losing position open.
Practice without money. On paper, write down long 100, SL 98, TP 104. Identify the entry order type; stop trigger price; order type after triggering; action after a partial fill; and how the remaining target is cancelled after a full exit. If the terminal cannot provide a clear answer, a real order is unnecessary.
Self-check. A market buy's price is not guaranteed. A limit order's execution is not guaranteed. A Stop-Loss does not eliminate slippage, technical failure or liquidation before the chosen trigger is reached.