Other related videos: #1 Order types and parameters - ua-cam.com/video/vm2kDspBMWw/v-deo.html #2 Order matching engine - ua-cam.com/video/yoYw5MhJfZg/v-deo.html #3 Market orders - ua-cam.com/video/BhTp2WtWD2s/v-deo.html #4 Limit orders as takers - ua-cam.com/video/d9D4KMDP4uI/v-deo.html #5 Limit orders as makers - ua-cam.com/video/ShGkzw2KivI/v-deo.html #6 Sell side stop orders and the delay condition - ua-cam.com/video/rFX7OJDtKbg/v-deo.html #7 Buy side stop orders - ua-cam.com/video/2G7VkxVoqMo/v-deo.html All in this list: ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html
The sell sell, sell buy, buy sell, buy buy is confusing AF. Stop buy, stop sell no the buy books... This seems needlessly complicated and just goes too quick for me. Perhaps this is just above my level but I hope my point comes across
I know it's a 2yrs comment, but I feel the same. The whole thing doesn't look too complicated but somehow people can't give a straightforward explanation.
So a buy side stop sell order will execute as the price starts to go down below the stop price? The sell sell, sell buy, buy sell, buy buy is a bit confusing. I'll stick with limit orders for now heh. I've never made stop orders due to fear of it doing something strange and selling accidentally at a very low price if I forget a decimal place.
_So a buy side stop sell order will execute as the price starts to go down below the stop price?_ Hey Jim - You’ve got it. The sell-buy and all those are just abbreviations to make it easier to say without getting twisted. I’ve adopted the convention of saying the side of the order first and then, the type. Like this: order side | order type Given your example, (buy side stop sell order), I would say: Sell side stop order with a stop price on the buy side of the order book. Shorter notation boils down to this: Sell-buy stop order. Thanks for bringing this up the possible confusion with this particular notation. I’ll keep it in mind going forward. Let me know if you run into other questions.
Thanks very much! :) The video did help me a lot, so don't worry about it. I like the bit where you showed which stop trades are not worth doing based upon their logic. I wouldn't have even noticed this if it wasn't pointed out to me.
Hey Piotr - Not yet. Right now, these are the two playlists with relevant trading info: GDAX specific - ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html Trading in general - ua-cam.com/play/PLZbbT5o_s2xozgvFCx7Szh_rwH9GQWgXU.html Much of the content in the GDAX playlist is general and applies to other exchanges/brokers as well. Still building these out.
You are really coming along! 😎 Make that 14! There are 49 in the list now. Just added one more yesterday. Keep up the work. Let me know when you cross the finish line! 🏁
if your in a position that's still rising around $100 but may dip after you've gone to bed and placed a limit order at $80, would a fast dip bypass that limit order and keep it on the books? is that why you would set a stop loss at $80 with the limit tap below at say 78?
Hey Phil - If our position is trading around $100 and we place a sell limit order at $80, our order will be filled immediately right around $100. Sell side limit orders are filled at the highest bidding price that is above the limit price. This one covers that scenario: ua-cam.com/video/d9D4KMDP4uI/v-deo.html The reason we have the gap between the $80 and the $78 is because of this: *a fast dip bypass that limit order and keep it on the books* After the stop is triggered, the limit order that is submitted can get stuck on the book if the price bypasses the limit price before the limit order arrives at the book. This one covers this scenario: ua-cam.com/video/8NUN1PmsPI0/v-deo.html
thanks so much for the prompt response, subscribed! sorry for being a noob, but i watched all of those and maybe the point got lost in all the details for me. also as a beginner i'm looking for context on each one as in direct application, but now i'm confused. i thought the stop loss was the way to simply prevent a loss when you can't be there to monitor the trend lines. so to reiterate let's say i took a $50 position at 6pm but now it's $100 at 11pm and looks like it may fall and i want to go to bed. i thought placing a stop order with the stop price at $80 and under the advance tab a limit price at $78 would pull me out with a profit if it dipped when i was asleep. if that's not the case what is the correct way to stop loss a scenario like this when i can no longer monitor a position? being self employed it's also common i have to leave during the day as well. thanks again for all this advice.
Hey Phil - Thanks for subscribing! You're logic is correct here. But... In your original post, you said this: *placed a limit order at $80* Which is why I answered the way I did (I thought you were comparing plain limit orders vs. stop-limit orders). If the price is trading at $100 right now, and you submit an sell limit order with a limit price of $80, it will fill immediately. This is because the $80 limit price is the minimum you are willing to take, and since $100 is higher than your min of $80 a deal can be stuck right away. By "deal", I mean a trade. This is why we need the stop. If we didn't have the stop, the order would just fill right away opposed to *only* if the price drops. Hey and no problem being a noob. We have to start somewhere. Let me know if you still have questions about what I have said here.
Hey forest - Never. The key is that the future price will be different, so not "now" but in the "future". The stop allows us to have an order automatically submitted if the trigger is met. We sell if the price drops to limit our loss.
Why we would use stop-limit-order instead of limit-order ? I know stop works as a trigger, but why that trigger is necessary for us? I still do not see use for stop-limit-order.
@@deeplizard it is automated the submission under certain condition yes, but why not just sumbit yourself the limit-order and just wait untill your ratio is achieved? That is my question. I dont see yet why someone would like to use stop-limit
The reason is automation. If the market is moving fast, automation can help. Additionally, automation can remove the emotional component around making the decision.
It would be helpful to not camp out on the jargon but to give an example and apply the jargon. Something like "in this example I want to buy X amount of ABC when the price falls to $XYZ. That's called a [fill in term]. Here's how you'd do that [show on screen]"
So basically for a sell side stop order you will always be charged a fee. Is there no way you can carry out a sell side stop order without incurring fees?
Hey Will - That's right. To avoid the fee, the order must hit the book. At this point, a taker must take the order off of the book to get an execution. This event is uncertain. It won't happen if price keeps moving lower. Hence, the gap.
We never want to do this IN the present. However, we may want to in the future. Suppose we want to buy. However, we think the price will drop, so we want to wait until some future time. Now, suppose the price increases. If we still want to buy, what do we do? We can forget about it, keep waiting, or buy at the higher price. This logic keeps going. For selling at a lower price, we do this when we want to cut our losses and move on.
Im still trying to figure all this out. Very confusing for me for some reason. Say I buy X coin at $100. I wan't to set it to sell if it drops to $90, but I also want it to sell if it hits $120. I feel like I've watched dozens of hours of videos and I can't figure out how to set up an order to do this. Is this even possible?
It's simpler than you think my friend. If you buy X at $100 and want to sell moment it hits $120, then you need to place "sell- limit" order. It will only get triggered once it goes up and reach that price. If you want to minimize loss and sell it once it drops to $90, then you would place "sell- stop loss" order. I hope this is clear!
A stop order is an order with a trigger, the stop price. When we say "stop loss" it means that we are using the stop order to exit a position (stop a loss from continuing). If we have a long position, the stop price goes on the sell side. If we have a short position, the stop loss goes on the buy side. Hope this helps!
Thanks for letting me know. Can you expand on this part "not very clear using exactly the same way to sell"? I'm not sure which part you are referring to there. Thanks.
![How to Get a Developer Job - Even in This Economy [Full Course]](/img/n.gif)
Other related videos:
#1 Order types and parameters - ua-cam.com/video/vm2kDspBMWw/v-deo.html
#2 Order matching engine - ua-cam.com/video/yoYw5MhJfZg/v-deo.html
#3 Market orders - ua-cam.com/video/BhTp2WtWD2s/v-deo.html
#4 Limit orders as takers - ua-cam.com/video/d9D4KMDP4uI/v-deo.html
#5 Limit orders as makers - ua-cam.com/video/ShGkzw2KivI/v-deo.html
#6 Sell side stop orders and the delay condition - ua-cam.com/video/rFX7OJDtKbg/v-deo.html
#7 Buy side stop orders - ua-cam.com/video/2G7VkxVoqMo/v-deo.html
All in this list: ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html
great video
Great vid!
Thanks Roman!
The sell sell, sell buy, buy sell, buy buy is confusing AF. Stop buy, stop sell no the buy books... This seems needlessly complicated and just goes too quick for me. Perhaps this is just above my level but I hope my point comes across
Corey - Did you watch this as a standalone video or did you also watch 1-5 in the series?
Appreciate your feedback.
I know it's a 2yrs comment, but I feel the same. The whole thing doesn't look too complicated but somehow people can't give a straightforward explanation.
much better audio, enough to be able to follow, many many thanx
Awesome! Thank you!
So a buy side stop sell order will execute as the price starts to go down below the stop price? The sell sell, sell buy, buy sell, buy buy is a bit confusing. I'll stick with limit orders for now heh. I've never made stop orders due to fear of it doing something strange and selling accidentally at a very low price if I forget a decimal place.
_So a buy side stop sell order will execute as the price starts to go down below the stop price?_
Hey Jim - You’ve got it. The sell-buy and all those are just abbreviations to make it easier to say without getting twisted.
I’ve adopted the convention of saying the side of the order first and then, the type. Like this:
order side | order type
Given your example, (buy side stop sell order), I would say:
Sell side stop order with a stop price on the buy side of the order book.
Shorter notation boils down to this:
Sell-buy stop order.
Thanks for bringing this up the possible confusion with this particular notation.
I’ll keep it in mind going forward.
Let me know if you run into other questions.
Thanks very much! :) The video did help me a lot, so don't worry about it. I like the bit where you showed which stop trades are not worth doing based upon their logic. I wouldn't have even noticed this if it wasn't pointed out to me.
If you click on the price you are trying to sell at, then forgetting a decimal place shouldn't be too big of a concern.
Do you have a video where you explained candlestick chart?
Hey Piotr - Not yet.
Right now, these are the two playlists with relevant trading info:
GDAX specific - ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html
Trading in general - ua-cam.com/play/PLZbbT5o_s2xozgvFCx7Szh_rwH9GQWgXU.html
Much of the content in the GDAX playlist is general and applies to other exchanges/brokers as well.
Still building these out.
Is it right to say a stop order is like a "snipe" order that does not show up on the order books, unlike a limit order which does?
I am at 35..only 13 remaining ...woohhoooo!
You are really coming along! 😎
Make that 14! There are 49 in the list now. Just added one more yesterday.
Keep up the work. Let me know when you cross the finish line! 🏁
if your in a position that's still rising around $100 but may dip after you've gone to bed and placed a limit order at $80, would a fast dip bypass that limit order and keep it on the books? is that why you would set a stop loss at $80 with the limit tap below at say 78?
Hey Phil - If our position is trading around $100 and we place a sell limit order at $80, our order will be filled immediately right around $100. Sell side limit orders are filled at the highest bidding price that is above the limit price. This one covers that scenario: ua-cam.com/video/d9D4KMDP4uI/v-deo.html
The reason we have the gap between the $80 and the $78 is because of this:
*a fast dip bypass that limit order and keep it on the books*
After the stop is triggered, the limit order that is submitted can get stuck on the book if the price bypasses the limit price before the limit order arrives at the book. This one covers this scenario:
ua-cam.com/video/8NUN1PmsPI0/v-deo.html
thanks so much for the prompt response, subscribed! sorry for being a noob, but i watched all of those and maybe the point got lost in all the details for me. also as a beginner i'm looking for context on each one as in direct application, but now i'm confused. i thought the stop loss was the way to simply prevent a loss when you can't be there to monitor the trend lines.
so to reiterate let's say i took a $50 position at 6pm but now it's $100 at 11pm and looks like it may fall and i want to go to bed. i thought placing a stop order with the stop price at $80 and under the advance tab a limit price at $78 would pull me out with a profit if it dipped when i was asleep. if that's not the case what is the correct way to stop loss a scenario like this when i can no longer monitor a position? being self employed it's also common i have to leave during the day as well. thanks again for all this advice.
Hey Phil - Thanks for subscribing!
You're logic is correct here.
But...
In your original post, you said this:
*placed a limit order at $80*
Which is why I answered the way I did (I thought you were comparing plain limit orders vs. stop-limit orders).
If the price is trading at $100 right now, and you submit an sell limit order with a limit price of $80, it will fill immediately.
This is because the $80 limit price is the minimum you are willing to take, and since $100 is higher than your min of $80 a deal can be stuck right away. By "deal", I mean a trade.
This is why we need the stop. If we didn't have the stop, the order would just fill right away opposed to *only* if the price drops.
Hey and no problem being a noob. We have to start somewhere.
Let me know if you still have questions about what I have said here.
nope, that clears it up perfectly, you are brilliant!
why would you want to sell for less than the price actually is in the market ?
Hey forest - Never. The key is that the future price will be different, so not "now" but in the "future". The stop allows us to have an order automatically submitted if the trigger is met. We sell if the price drops to limit our loss.
Why we would use stop-limit-order instead of limit-order ? I know stop works as a trigger, but why that trigger is necessary for us? I still do not see use for stop-limit-order.
It automates the order submission.
@@deeplizard it is automated the submission under certain condition yes, but why not just sumbit yourself the limit-order and just wait untill your ratio is achieved? That is my question. I dont see yet why someone would like to use stop-limit
The reason is automation. If the market is moving fast, automation can help. Additionally, automation can remove the emotional component around making the decision.
@@deeplizard ok, so nice from you to responde. You your channel is very nice, thanks!
It would be helpful to not camp out on the jargon but to give an example and apply the jargon. Something like "in this example I want to buy X amount of ABC when the price falls to $XYZ. That's called a [fill in term]. Here's how you'd do that [show on screen]"
So basically for a sell side stop order you will always be charged a fee. Is there no way you can carry out a sell side stop order without incurring fees?
Hey Will - That's right.
To avoid the fee, the order must hit the book.
At this point, a taker must take the order off of the book to get an execution.
This event is uncertain. It won't happen if price keeps moving lower. Hence, the gap.
why would yo want to buy at a higher price than the present and why would you want to sell at a lower price than the present?
We never want to do this IN the present. However, we may want to in the future.
Suppose we want to buy. However, we think the price will drop, so we want to wait until some future time.
Now, suppose the price increases. If we still want to buy, what do we do?
We can forget about it, keep waiting, or buy at the higher price.
This logic keeps going.
For selling at a lower price, we do this when we want to cut our losses and move on.
Im still trying to figure all this out. Very confusing for me for some reason. Say I buy X coin at $100. I wan't to set it to sell if it drops to $90, but I also want it to sell if it hits $120. I feel like I've watched dozens of hours of videos and I can't figure out how to set up an order to do this. Is this even possible?
It's simpler than you think my friend.
If you buy X at $100 and want to sell moment it hits $120, then you need to place "sell- limit" order. It will only get triggered once it goes up and reach that price.
If you want to minimize loss and sell it once it drops to $90, then you would place "sell- stop loss" order.
I hope this is clear!
@@WokeWook he was asking if you can set both limits as one order...
I'm totally lost. So a stop order is not a stop loss?
A stop order is an order with a trigger, the stop price. When we say "stop loss" it means that we are using the stop order to exit a position (stop a loss from continuing). If we have a long position, the stop price goes on the sell side. If we have a short position, the stop loss goes on the buy side.
Hope this helps!
confusing as shit from the middle of the video to the end. not very clear using exactly the same way to sell.
Thanks for letting me know. Can you expand on this part "not very clear using exactly the same way to sell"? I'm not sure which part you are referring to there. Thanks.