Stock Market Order Types (Market Order, Limit Order, Stop Loss, Stop Limit)
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- Опубліковано 28 кві 2024
- In this stock market order types tutorial, we discuss the four most common order types you need to know for buying and selling stocks: market order, limit order, stop loss, and stop limit.
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I concur.
The animations make it 400000% easier to understand. Thank you very much for this!
yes I watched the Trailing Stop Loss video and those ones they nailed the explanation of the concepts, especially the Tightening of the Stop Loss delta
I'm way too high for this I'll be back
😂😂😂🤣🤣🤣🤣
are you back yet?
😂😂😂
🤣🤣🤣🤣💀💀. 🤯🤯💨
…guys got a portfolio full of cannabis and Pepsi stock!
I can't tell you how many hours I have listened to others and couldn't get my head around this and in just a few minutes you make this so understandable and useable. Bless you.
same here.
exactly
Finally someone that actually takes the effort to explain precisely how this works thank you !
Thanks a lot.. It's the clearest explanation that I've across.. Good job with the animations..
Thanks for watching!
I completely agree with you! Others guys are hiding their strategies!!
100% agree. This is by FAR the best, clearest, best animated version I've ever seen on UA-cam or anywhere else. And it works perfectly for understanding it for cryptocurrencies as well!
Totally agree! The visuals really help with the explanations, instead of distracting the viewer from what she is saying.
@@Arvabelle in the case of pump and dump, like CEI we saw the other day, the stock had a sharp price drop from peak $4 to $3 in just a couple seconds, what would be the effective way to sell it? Stop loss, stop limit loss, trailing stop loss, or trailing stop loss limit?
After watching about 10 other videos, FINALLY a video where it’s explained in a way that makes sense and all areas are covered-thank you!!!
10 times, i don't think the problem is with the presenter.
@@freddurst4420 damn dude, little rough aren't you?
This is exactly what I needed and love the fact that you're starting with the absolute basics. Your explanations and examples are so easy to understand! Thanks so much :) Can't wait for your next video!
So glad to hear that!!
can you be my partner in Investing
I rarely comment on videos but came here to let you know that you are the ONLY youtuber who managed to explain this in a way that I understood. I have only been investing for a short period but I struggled with these concepts and you just helped me grapple them!
Haha glad to hear it!
@@Arvabelle Same from me, I hardly comment, but this was such a well made video. I am currently studying for my SIE.
you are a mother-born teacher. You have to make more videos explainong stupidily-named investment concepts. You're just awesome at making them easy and understandable.
I liked the way you simplified the order types with the right visuals and speaking to the point. Thank you!
Thanks for watching!
FINALLY! I finally get it. I've been pulling my hair out trying to understand the stop-limit tool. THANK YOU MUCH! You've earned a new sub.
I can see clearly now the rain is gone 🎶 Thank you so much for the comprehensive breakdown! Greatly appreciated!
Random but I love the background of this video with the stocks on the screen! Your production is so good.
I love this video! You explain so well and clearly! Thank you so much!
Best explanation for me.. I have been struggling with this in my head.
This video was exactly what I needed. Thank you!
Glad it was helpful!
This is the 3rd video I've watched on Market Order Types today... I finally got the answer I've been looking for, after watching this vid. Thank you!
This was such an awesome video. Studying for my series 7 and couldn’t comprehend the difference between a limit and a stop until now!
I was looking for a video like this for months!
same lol
Thank you Arvabelle for explaining BOTH buying /And/ selling. You helped me finally understand the pros and cons of each order type this way :D
This was so brilliantly explained to the uninitiated. Thank you.
Thanks for watching!
Love the comparison to ordering at a restaurant. I mainly stick with market orders because I'm buying and holding for the long term & the absolute best price at the moment isn't super important to me
This is the best explanation I've seen yet on this topic. Thanks so much!
Thanks for watching!
I love this video. Clearly explained Arvabelle. Well done!
Bless u, this video really saved me from my finance unit!!!
Glad it helped!
The audio quality is amazing, good information too 🙏🏽
Thanks for watching!
Thank you so much for clear and concise information!
It took me forever to find a video like yours.
Glad it helped!
FINALLY, THANK YOU. BEST EXPLANATION I'VE SEEN !
Best video of the subject I've seen yet. Thanks!
I'm so glad I stumbled upon your channel. Your videos are so helpful and easy to understand.
Thank you!
I have been watching your videos since yesterday and they are EXTREMELY HELPFUL!
Glad you like them!
first video I’ve been able to find with this good of details and explanation, thank u !
Thanks for watching!
one of the most informative and best video for a beginner like me, thank you for your effort, subscribed :)
Thanks for watching!
I've really been struggling to fully comprehend the different types and have made some mistakes, as a result. This is a great explanation, but I may have to watch this a couple more times to really nail it. Thanks!
Gets to and stays on point both verbally and graphically. Learned more in a few minutes than hours of other searches. Great presentation. Much appreciation.
Subscribed and liked, this is the only video on youtube that explains how these buy/sell options work!
Appreciate it! Thanks for watching
Thanks for sharing this excellent information.
Thanks for watching!
Amazing! Thank you so much. When it comes to stocks & trading I’ve been so frustrated and disappointed with people out there always trying to piggyback their own interest or agenda. You delved into the subject with no frail, good visuals and easy to understand. You are an amazing teacher!
True
Extremely good video, thank you. The illustrations were so helpful.
Thanks for watching!
This is probably my most watched video! Whenever I'm ready to make a 'new' type of order, I come here to make sure I understand it.. Thank you!
These videos are well done. I teach a high school personal finance and investing course and will use some of your videos in class next year. Thank you and keep up the good work.
That’s so good to hear! Thanks for sharing!
@@Arvabelle I am a fellow Aggie. Quite a few of my students attended or are attending A&M recently and several majored (or minored) in personal finance. I believe it is a relative new degree.
Oh no way! Personal finance wasn’t my major but if any of your students have questions about A&M feel free to send them my way haha
just putting it out there, so good that a high school offers a personal finance and investing course, thats the first i've heard of that! should be mandatory.
@@d.novzee I agree! I wish I had a course like that in high school
Good stuff. You have all my respect for making this so clear and easy to understand. I was sure those were easy concepts, however traders seem to be worse teachers than informaticians...It's actually mindblowing. Thanks for this !
Pictures and explanations are so helpful for dummies, thank you for helping someone like myself understand a little more
great teacher. most of us dont know the basic and this is y we watch videos. keep it very very simple and somewhat simple
I think it is essential for beginners to learn about the various order types! You did an excellent job explaining them!
Thank you!
This is like the best explanation that I've gotten so far.
Glad it was helpful!
@@Arvabelle Very
Thank you for the clear and simple breakdown.
Best explanation I've seen on UA-cam! Thank you
Wow!! Thank you so much. I'm studying for the SIE and really was struggling with this - the book I'm reading was not clear and you have totally cleared this up for me. You are awesome.
Good luck on your SIE!!!!
Thanks, Thisis my first time and I truly appreciate the infomation you provided!!!!! I will need to review them for a second time. Martin.
Glad it was helpful!
simply the best explanation of order types in the internet, watched dozens of videos but none comes close, Excellent!Thanks for your clarity. Good job
This is by far the most concise, straightforward, easy to understand and grasp the concepts of any video I've viewed on the topic (and there have been many). Thank you!
Almost never use a stop loss or stop limit personally. If I'm trading I'll use limit orders, but lately I've been using a lot of market orders for my long term dividend holds. Should be noted that market orders won't work outside of regular market hours, you must use a limit order for that and shoot for the "mid" price. Another option to what Avabelle talked about in regards to partial fills is "all or none" option. Fill all at said price or none. Aren't we having fun yet?
I’m a beginner. This video was very useful and relatable! Thank you!
Glad it was helpful!
Besides a market order, do all the other orders expire at the end of the trading day if they are not executed? Or, is it possible to set one up for multiple days and “set it and forget it” 😄
Wow!! This is a really amazing video! I really appreciate you breaking this down for me, it helps me to understand it a lot better. I still have to walk through my own personal example to really make sure I got it.
Thanks for taking the time to explain the different types of stock orders....much appreciated.
Great video, it's so helpful with the animations and you explain things so clearly, you're a great teacher.
Thanks!
Great explanation of the different types of orders! Well done! 😀👍
Thanks for watching!
I have been looking for this for weeks. Finally found it .Thank you.
thanks
I was STRUGGLING with buy/sell limit & buy/sell stop limit trades & how they work until I found this video! I’m going to rewatch it bc this explanation by far was easier to understand-THANK YOU!!!
This is so helpful. I am trying to be more aggressive with my investments and this gave me the boost I needed. New subscriber. Thanks 🙏
Thanks for watching!
facts
"Price gaps don't happen very often". Yes they do. They happen all the time, every night, and sometimes the gaps are large. If my stock closes at $35 per share and I have a good-til-cancelled stop loss order of $30 to protect myself, but that night we get really bad news about the company and it opens the next morning at $20, by the time my order executes I may only get $18. Later that day, buyers realize the stock is oversold and it recovers somewhat back to $30. But I will only have $18 in my pocket and if I want to buy back in, I will have to shell out $30. Such is the downside of stop loss orders. But it is still the best protection we have if we work for a living and can't watch the stock market all day.
I think it depends on the stock you're trading. Most stocks will not have price gaps often, but some stocks definitely commonly experience price gaps. Research into prior activity of the stock will show how it typically behaves to let you know if price gaps are a common occurrence for the stock.
the animation was super helpful, thanks for making it so clear.
You are super amazing in simplifying and explaining seemingly complicated hard to understand ‘things’. Thank you.
Great explanation! I've watched at least 20+ videos related to Order Types and this is is undeniably the first that pulls it all together in a very well understood way. I'm still trying to gauge understanding on what appear to be somewhat gray areas, such as the terms "or above" and "or below" which pop up in a few Order Type definitions. Couple questions below.
3:33 Limit Order. Investor sets the Limit at $20, stock price becomes $24, then $22, then $15 (skipping $20), then $14. Since the Limit order will execute the stock buy at "$20 or below", does this mean the order will execute at the $15 or $14 price? I assume the $15, but, I wanted to make sure to ask the question.
7:33 Stop Limit. Investor sets the Stop at $55 and the Limit at $53. Stock price rises to $60, then $54, then $40. Since the price never hit right on $55 or $53, will the order have executed at $54 once it dropped to $40? Another question on this, same scenario and instead the stock price rises to $55 then lowers to $52. Will the order execute at $55 since you "guessed" that number exactly, or, will it execute at $52? Thanks for any help you can provide on this!
3:33 Limit Order: Prices will rarely actually “skip” $5, it’s usually a pretty steady rise or fall by a few cents at a time. But in your example, yes, it would probably fill somewhere between $14 and $15. Limit orders will still try to execute at the best available price, without going over your $20 limit.
7:33 Stop Limit: Again, stock prices won’t usually skip by amounts that are that large. If you’re setting your limit at $53, you’re telling it that you only want to buy if the stock price is $53 or “better”. Since $54 is higher than the limit you set, it wouldn’t ever execute there.
In both scenarios, the price you get is probably going to be pretty close to your limit. So if your limit was $53.00, it would likely fill at $52.98 or $52.84 or something like that. In theory it could get filled at a lower price…but once the price goes to or below your limit, it’s going to try to immediately execute. So unless stock prices are absolutely wild and changing that drastically within a few milliseconds, it’s highly unlikely that you would get it at $40 if your limit was $53.
Hope that makes sense
@@Arvabelle hello, does the "stop" needs to trigger the "limit" price before it executes the buy order? or when the price goes down to the stop price and exceeds it again, the order will be bought at the stop price?
I've been trying to understand stock trading for days and you just made it so much more digestible. Thank you!
Awesome - glad it helped!
This is what I exactly need, basic and simple, thanks for this.
Thanks for watching!
This is by far the best best best explanation than all the videos I have watched so far covering the main order types with examples. Keep going girl!
What is a take profit order?
Same thing as a stop loss only going in the other direction. Ex: If you buy a stock for $10 a share, you can set a take profit order at any price you want and it will auto sell at that price. You might want to sell once the stock reaches $12 a share, so you would set a take profit order to sell at $12.
Edit: This is a good thing to do even if it may seem counterintuitive to some people. It's part of the plan you should have behind every trade. Anyone who's traded in the markets has watched a trade gain massive profits, waited to see 'how high it will go' and lost every bit of profit as the stock dips down into Hades, lol. This strategy allows a predetermined percent, or dollar amount of profit, assuming the stock does go up.
@@melanievictor9521 wow ok. Thanks for this
@@melanievictor9521 Im using tradezero and cant seem to find a take profit/stop loss order all in one.
@@anemicbeats I'm not familiar with tradezero... it's very possible they don't have the option. I've only seen it that way on Webull. You could send an email to their support desk and maybe they would know more about it.... It's so convenient, I wish more platforms had the option to do both like that.
@@melanievictor9521 so a Limit then
I had watched some other videos before this but you have explained stop loss and stop limit really thoroughly through charts. Thank you :)
This was an amazing breakdown. I’m definitely subscribing because of the knowledge you possess.
Awesome explanations. The only thing I’m unclear on is the difference between a ‘Sell Stop Loss’ and a ‘Sell Stop Limit’. If my stock is currently at $50 a share... and I don’t want to sell it for anything less than $45 a share... I can put a Sell Stop Loss of $45 so it sells immediately when hitting $45.
Same scenario....... if it’s $50.. what is the advantage of doing a Sell Stop Limit?? Seems like if I put a Stop at $46 and a Limit at $45... it does the exact same thing (sells once it hits $45).
Can anyone explain the difference or why I would use one over the other? Thanks
@Alexis Bush I think it may protect you from a false downtrend, if you think it is going to go below $46 and the stock has support and bounces at $45.50, it could trend back up and you could capture a higher exit. Not sure if the order is void when the Stop hits and re-traces, may have to reset the order.
OK, let's compare the two types of orders:
A (Sell) Stop-Loss becomes a Market order the instant the Stop is triggered, so in that case your shares will sell for whatever the market will bear. This usually works out ok, but occasionally there won't be enough buyers in the price range that you wanted (due to extreme price volatilty, lack of demand, etc.), so sometimes your shares will sell for a lot less than you had hoped. Maybe you would rather hang onto your shares, rather than selling them so cheaply!
The (Sell) Stop-Limit prevents that from happening (and introduces a different problem instead). Using your example, if you set your Stop at $50 and your Limit at $45 then here is what would happen: As soon as the price hits $50 it will trigger the Stop, and this causes the Limit Order to become active. At this point the Stop has done its job and it's gone, it's outta there, and you merely have a normal Limit Order in effect.
Here is what your (Sell) Limit Order tells your broker: "Sell all of my shares immediately at the best price you can obtain, as long as the sale price is equal to or higher than my $45 Limit price". At this point your shares could sell for $50 or even higher if the stock decided to bounce upwards at that point. But in most cases your stock will start selling at or a little below $50 because that's the direction the price was moving when it triggered your Stop.
If there aren't enough buyers to purchase all of your shares in the $50 range then your broker will start selling to buyers with lower offers, so you might end up selling shares in several batches all the way down to your $45 Limit price, but no lower. If the price temporarily drops below $45 and then comes back up then your remaining shares (if any) will resume selling. The Limit Order will stay up until all of your shares have sold or it expires.
All of the other caveats apply. Sometimes the market moves so fast that it blows right through your Limit price and none of your shares will sell. Of course, if you had used a Stop-Loss instead then all of your shares would have sold quickly, but possibly at very low prices. So that's the flip side.
I hope this helps.
Thank you for this video. For some reason men can’t really articulate themselves while explaining stuff like this.
I've made it my summer homework to get my financial literacy up to snuff and your videos have been a great help. Thank you so much.
Very clear explanation. She hit the jackpot in terms of making concepts easy to understand.
Which order type do you use the most often?
Limit Buy/Sell (when brokers have the function), otherwise market buys on M1 Finance.
Arvabelle what program do you use to make these animations? Thanks
Adobe After Effects
@@Arvabelle Nice! Quick reply too - I need to get into a stronger editor, I've been using VideoPad Editor - but it's (old) and need to update to something a bit smoother to do those nice animations, :-) Hows the market treating you lately?
Arvabelle didnt know after effects could do that. I guess I gotta learn it. Thanks
Summarizing.. if you are a long term investor.. just use the market order.. a few cents will not affect anything:)
i've been watching so many videos and you are the best at explaining it so clearly so thank you so much
Glad to hear it helped!
Thank you so much for the visuals!! You were super helpful!
Thanks for watching Jacquelyn! Glad it was helpful!
Thank you, this video is informative and makes sense. However, from a practical standpoint, if I were to buy into a stock at $10, but want to limit my loss to 10% (Because I don't have time to monitor the market all day). Would I not just set a limit order at $9 GTC?
Why do woman traders explain things better than other guy traders bro lol
she is good at it
Maybe you're just paying more attention? :)
Cause shes enjoying helping, and actually thought about her dialogue and presentation, as all the guys just want to sound techy or forget that alot of people don't get it.
because they know how to make money, thus explaining it well will yield her more subscribers; thus making her more money. women are smart, much smarter than men give them credit
When you can explain something well in a simple way, it means whoever is teaching really masters the topic.
Limit order only here. I've got screwed on a Market order.
Yep I definitely like limit orders better too
I didn’t know you can do limit order on Robinhood. Now I started to make better profit.
GREAT job on this... clearest explanation I have come across and great job with the visuals. Thank you
Glad it was helpful!
She explained things so perfectly . I finally understand the market orders thanks to this video!
Nice video!
Glad you enjoyed it
great job! loving this simulation examples! Thank you!
Excellent explanation. I have a clearer understanding now. Thank you!
Thanks for watching!
I've been watching videos about this for hours and this is the first one that makes sense. Thank you for this!
I truly appreciate the explanation, I’ve been looking at so many videos and there not as clear as this one. Thank you
Glad it was helpful!
Very clear explanation! Great lecture Miss Thank you!👏👏🙏
Glad it was helpful!
This my bible everyday before trading. Thank you sistaaaaaa!!💕💕💕
Thank you so much for the most clear explanation on UA-cam I could find. Now I know where to go for concise teachings. Subscribed!
Glad it was helpful!
I find your information tutorial is so important for beginner like because I was able to understand how this thing works. Very informative, clear and excellent teaching.
I watched a few of these and yours was the most helpful and clearly explained. Thanks!
I love it when you educate me. Thank you immensely!
Best explanation video for order types on UA-cam! Very clear, easy to understand, and professional! I've been looking for a video like this for a long time! Thank you!
This is the BEST explanation i have ever found. Crystal clear . Thank you so much .
Arvabelle seriously your channel is GOLD !! nobody else explains all this stuff as good as you ... this channel is THE reference for everybody, greetings from Europe
AMAZING!!! Thank you so much for this Proper explanation. Please continue making more videos and stay safe.
Thanks for watching!
your explanation is the best out of all the videos i've watched. Liked and subscribed!
Thanks for watching!