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FRM: Order Types (market, limit, stop, stop-limit)

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Market order: guaranteed fill, but not price. Limit order: guaranteed "or better" price, but not fill. Stop: After price trigger reached, becomes market. Stop-limit: After price trigger, becomes limit order. For more financial risk management videos visit our website at http://www.bionicturtle.com!
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Text Comments (229)
tin nguyen (8 days ago)
hello admin, wishing project of good success, more development
Priya D'Souza (23 days ago)
Thank you so much David....it was really very helpful to me who's just learning this intricate world of wealth buidling!!
Bionic Turtle (22 days ago)
That is great to hear, it's our pleasure!
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Cahan Fowler (25 days ago)
Great explanation and diagram !!! Thanks!
Kiki Sui (1 month ago)
To actually make some good money with Forex you actually have to be ready to spend some money. The best strategy I can recommend is The *Blended Model Strategy* created by *Dmitry Vladislav* I make $1300 as a day trader daily using this strategy. you can search his name on Google+ and follow his team for more information.
Udesh Kumarasingha (1 month ago)
Isn’t a limit sell order placed higher than the market and limit buy order is placed lower than the market rate
Bree Weasner (1 month ago)
Excellent video. Watching it several times so I totally "get it"! lol BTW, your link in this video's description needs to have the "!" removed from the hyperlink as it goes to a 404 page. I'll be more than happy to delete this comment once this has been corrected.
Snicklefritz (2 months ago)
This is the most concise and best explanation I have found. Thank you!
ling s (2 months ago)
i don't get it
Bionic Turtle (2 months ago)
We have a very helpful forum with discussions about order types. You can get answers to the questions that you have related these concepts. https://www.bionicturtle.com/forum/
Jannet R (2 months ago)
This is the bestest explanation I’ve ever seen, so far.
Bionic Turtle (2 months ago)
Thank you! We are happy to hear that our video was so helpful!
Shanika Richmond (2 months ago)
Amazing explanation and breakdown! Best video on the subject on YouTube. Thank you.
Bionic Turtle (2 months ago)
Thank you for watching! We appreciate your kind words! :)
ess mac (2 months ago)
Nice one, thanks.
Bionic Turtle (2 months ago)
Thank you for watching!
Lara Gruschi (5 months ago)
thank you, that just saved my life wow
Rivendell Rivendell (5 months ago)
Best explanation so far and beautifully done too, I keep coming back to it, over and over again
Bionic Turtle (5 months ago)
Thank for such a kind comment
josh dashti (5 months ago)
u messed up man. the graph should be the other way around. u have the buying on green showing up and selling when prices go down. messed up logic
German Adolfo Bahr (6 months ago)
Excellent generic explanation. Very good planified to explain.
Bionic Turtle (5 months ago)
Thank you! We appreciate your feedback!
R (7 months ago)
I understand everything apart from Stop orders. So market and limit orders are simple. I have missed out on buying trades by fractions of 1% where had I set a stop order I would have got it. I believe I could have set a buy of 5000 say, (I missed out on a trade that dropped to 5001 before going back up!), but to have a higher buy level of 5100 in case the lower level was not reached. Once the price drops below the 5100 level I assume that the 5100 level then becomes active as the fall back buy option and in this example the buy would have executed at 5100!? Also, I need to protect myself from bad investments and set up stop orders to limit losses.
Ashish Ranjan (7 months ago)
Very well explained. 5/5
ferdinand santos (7 months ago)
very clear explanation,got it
SpaceGhost 0ne (8 months ago)
How the hell do you dislike this video.
Charles Diver (9 months ago)
This is all back to from though....dont you want to get it set up to sell at above the market price? Especislly with cryptio where the markets volitile by %15 each way per day?
xastunts (10 months ago)
thank you for this video! i felt that even a moron like myself could understand this! its EASY, WELL explained, and NOT RUSHED. THUMBS UP!
ming yang (10 months ago)
Great, the best by far
Sadiq Khan (10 months ago)
Who will be stupid enough to place a limit buy at $35 or $37 when the market price is $30
Sadiq Khan (10 months ago)
I now understand where you coming from. My trading strategy is to buy when the price is dipping and sell when lifting. So how I implement the limit or stop-limit orders are the exact opposite of how you’ve explained it. But for the purpose of explaining it I understand and agree with your point of view.
Bionic Turtle (10 months ago)
It's not stupid. These are exaggerated to illustrate. If the asset were volatile (e.g) and semi-liquid, maybe the price is currently $30 and you want to buy. But the price can slip up between your order and execution. A market order will get executed, but at the best price; so maybe that's $38.00 (these numbers are exaggerating of course). But if you knew it could slip up to 38.00, you would not have ordered. So you put it a limit but at 35.00. That just means your buy is executed at 35.00 or better; eg, maybe it gets executed at 30.00 or 31.00. It is not a buy at 35! It just means "if you can't do better than 35," then kill the order. It remains an order to fill at the best available price! So, actually, in realistic trading, limits are can be very useful.
Dayta (10 months ago)
this is by far the best video explaining those order types
Cedric J (10 months ago)
Amazing, you did a REALLY good job in explaining this!!!
M Sagnia (11 months ago)
Hi there, thanks for the video. I wanted to expand on limit orders. Does the limit order always gets filled if the price goes beyond the limit order? So let's say I want to go long at 35$ at market open, stock is trading at 36$, goes down to 34$ within the first minute of market open, with the wide bid spread associated with market open, will my order get filled at 35$ ?
M Sagnia (11 months ago)
(Goes down to 34$ and back up to 36$ within the first minute) I should add
The Deerfield Diaries (11 months ago)
This is a great video, but it is very confusing. Aside from the graphics being confusing, if a stock was trading at $30 why would someone going long put in a limit order for $35? It would make sense for them to put in a limit order for $25 and enter the market if the stock price drops but why would anyone want to guarantee a $35 price for a stock trading at $30? Edit: Looks like your analysis assumes the long is buying as the price climbs higher. I suppose it would make sense that way.
F N (2 months ago)
bidding to buy at higher price is used in breakout strategies, becz once a certain resistance is broken then a probable sharp rise in price is expected. ( I am still a beginner, someone correct me if I am wrong)
Jose Chavez (11 months ago)
Grant Rostad (1 year ago)
This helped a lot for the Series 6. Thanks!
Bionic Turtle (1 year ago)
I did just start a new FRM series (we're 9 into the series), when we get to T3. Hull, there will be quite a bit on options. But it won't be before Monday, lol, we can barely keep up with our paying customers at BT. Thanks!
Grant Rostad (1 year ago)
Bionic Turtle any possibility you can make one for calls puts longs and shorts before Monday :)
Bionic Turtle (1 year ago)
Awesome, glad to hear it. Good luck on the exam!
KimChiTofu (1 year ago)
how do you sell your stock on td ameritrade by T-Stop % and $? Let's say a penny stock is .18 cents and when the market open, i know that the price will go up to 20 cents by mid day it will go to 24 cents. So let's say i want to sell my stock by 22 cents, how do you set it with T-Stop $ to sell when the price reaches 22 cents?
piby 180 (1 year ago)
so perfect! thx :)
nikkie j (1 year ago)
I'll probably have to watch this video 50million times to try to fully understand the logic of all this, but it's still the best video I've seen yet. Thank you!!!!
Kiki Sui (1 month ago)
To actually make some good money with Forex you actually have to be ready to spend some money. The best strategy I can recommend is The *Blended Model Strategy* created by *Dmitry Vladislav* I make $1300 as a day trader daily using this strategy. you can search his name on Google+ and follow his team for more information.
SilentDiablo (3 months ago)
I day and swing trade. I now almost always buy with a limit order because I've been screwed with market orders several times not paying to much attention buying penny stocks. That small fluctuation can mean a large % loss in money. So I stick to buying with limit orders now. I do put a stop loss order with every trade I make to minimize any losses. I usually limit them to 1-2% loss depending on the stock and the potential for profit.
nikkie j (1 year ago)
Bionic Turtle and I'm pretty new to the market so I'm just searching for much as I can, specifically this topic. This was so easy for me to understand and trust me I've been searching lol
Bionic Turtle (1 year ago)
Hi Nikkie, LOL, thank you, I recorded it, and I still have to refer to it occasionally because I haven't mastered it. Actually, this weekend I put in my first ever limit order (heretofore I had only used market orders) so i I have yet myself to have found a need to execute a stop (much less a stop-limit) but I'm a conservative investor not a trader so ...
Jordan wang (1 year ago)
if it's stop at $25 dollars, does it become a market order when the prices reaches $25 or the bid and ask reaches $25?
Grant Magner (1 year ago)
On the buy side if you put your stop-limit order with the stop @ $35 and limit @ $37.... when the market hits $35 and your limit to buy @ $37 or less goes in.. are you now more likely to get filled at the higher price of $37 while the market currently trades at $35 ?? If you assume the market price hangs around at $35 (but obviously there are still sellers in the level 2 above the current the lowest asking price of $35 that want to sell their shares at higher prices like $37) am I more likely to get paired with these higher priced sellers since my limit order is @ $37 or would I automatically be paired with the current best asking price at the time? I just want to make sure I understand all of the angles. Thanks to anyone who can answer this question
FreeLearnclass (1 year ago)
awesome Music
Shane Cox (1 year ago)
clear as mud
Bionic Turtle (1 year ago)
Thank you for watching!
Daniel Cloud (1 year ago)
Will market orders fill closer to the current price as both volume and number of traders increase?
marc tremblay (1 year ago)
I was so confused before but not anymore :). thanks
Bionic Turtle (1 year ago)
You're welcome! Thank you for watching!
Sina (1 year ago)
Awesome, thx very much
Bionic Turtle (1 year ago)
You're welcome! Thank you for watching! :)
LoGan (1 year ago)
thank you. great vid
Bionic Turtle (1 year ago)
You're welcome! Thank you for watching! :)
mike s (1 year ago)
wow i think i get it thank you!
Bionic Turtle (1 year ago)
You're welcome! Thank you for watching! :)
Jason Broadway (1 year ago)
This is the first stop limit video that I grasped. Well done!
Bionic Turtle (1 year ago)
Thank you for watching! We are very happy to hear that our video was so helpful!
Valden Gardiner (1 year ago)
so the stop is 35 and the limit is 37
Justin Case (1 year ago)
Thank you! Great explanation..
Bionic Turtle (1 year ago)
You're welcome! Thank for watching!
rahul kashyap (1 year ago)
easily understandable
Bionic Turtle (1 year ago)
Thank you for watching!
Stayler17 (1 year ago)
Man i really needed this tx a ton!
Bionic Turtle (1 year ago)
You're welcome! Thank you for watching! :)
Steeve Thibodeau (1 year ago)
With my broker limit is trigered at 30$ and give me the bid price which is NOT better than what Ive setted up...! Normal?
Isaiah Aragon (1 year ago)
very informative and helpful.
Bionic Turtle (1 year ago)
Thank you for watching!
Jacobs Teple (1 year ago)
Hi, can you please teach me with Binary Options?? *GO HERE* https://twitter.com/sabinagerasimoq/status/814569809497247749
Zachary Guth (1 year ago)
Hello, first of all, great video! I am new to investing and am a little confused. Why would you want to place a limit order above the market price? I always thought limit orders were the least that you are willing to pay per share?? Not more than what the market price is. Sorry if this is a dumb question, I'm just confused haha
shanna walker (2 years ago)
im using wallstreet survivor to teach me and it says limit is the price thats below market value and stop is above im confused
Dwx Beta.Elavator (1 year ago)
you forgotto explain a stop-limit though - different type of order entirely
itdetective (2 years ago)
buy limit > below current price buy stop > above current price sell limit > above current price sell stop > below current price Vision; buy limit > because you think price is low enough and will rice from there buy stop > because you think: if it breaks out of the resistance level, the price will rice even more sell limit > because you think the price is too high now and will go down from there sell stop > below current price because if it breaks out of the support level, the price will go down even more Note: if you have a buy stop limit then it will be an order between 2 prices, no less, no more (lets say from 30 but no more than 32) Hope it clears it all up for you now.
jferrari (2 years ago)
Excellent video! Very clear and easy to understand. Thanks
Bionic Turtle (1 year ago)
Thank you for watching!
Choon Sae (2 years ago)
Thank you for this awesome easy to understand explanation with the graph. :)
Bionic Turtle (2 years ago)
You're welcome! Thank you for watching :)
Usha Rao-Murthy (2 years ago)
Excellent refresher!!!!!
Bionic Turtle (2 years ago)
Thank you for watching!
razz P (2 years ago)
Does a limit order need to be fully filled before it is processed? How much time is a limit order given before it is canceled if the order was not fully filled? Also the limit price is set by last stock sold price?
Think_Care (2 years ago)
It is still confusing for two reasons. One, it assumes that the price rises on the buy. So people say, why would I buy higher. To show this, the buying need to be shown below the market price. So the buy limit $28. So as the price drops, it reaches $28, the buying executed. The other problem is that while in most places you are saying it right, the order sent to the market, I think in the first part you say the order will be filled above that price. Unfortunately it will only be filled if someone is willing to buy it or in the case of a buy, if someone is selling it. The market price is the last price but it does not guarantee that it will not turn around as the next buying is not willing to pay that price. I don't know if all this can be shown on one graph. TD also calls the Stop order, Stop-market order. :)
farquoi (2 years ago)
that graphic makes it all clear
Bionic Turtle (2 years ago)
Thank you for watching! We are happy to hear that our video was so helpful!
Spicy Taco (2 years ago)
Wait, if it's at $30, why would you want to buy at $35 and sell at $25?
Tom Vuu (8 days ago)
His explanation is for different scenario. 1) When the price is at $30, you normally want to BUY LIMIT at or below $30. You can then take profit at $35 by using SELL LIMIT at $35. 2) After you enter a trade, you can set your stop loss with a SELL STOP below $30. In his example, he set his SELL STOP at $25. 3) When the price is at $30, sometime you want to buy a break out pattern that pass resistant line at $35. In this case, you can set a BUY STOP at $35 so the BUY order will only execute when price pass $35.
Kiki Sui (1 month ago)
To actually make some good money with Forex you actually have to be ready to spend some money. The best strategy I can recommend is The *Blended Model Strategy* created by *Dmitry Vladislav* I make $1300 as a day trader daily using this strategy. you can search his name on Google+ and follow his team for more information.
Jackson Wallis (1 month ago)
Never assume! We want to limit losses. Buy at $30. Stop, or don't buy when price reaches $31. Sell to stop losses (if price goes below $30) at $29. This says we're only comfortable losing $1 below purchase price. Or, sell when price reaches our desired gain of $33 per share. Recap: Scenario #1 has us selling to stop losses at $29. Scenario #2 has us selling when our desired gain is reached. These mechanisms are vital for the health of your wealth. Not using them risks losses far beyond what was outlined in above video. Stocks do reverse directions without notice. I don't know of many people who can absorb a $5 to $10 loss per share and still be happy. Protect your investment by knowing how to input these safeguards on every stock position.
Q * bert (1 year ago)
I'm assuming these are exaggerated example figures to illustrate his point
Think_Care (2 years ago)
He is talking about a situation when the price rises. Some people buy when the price rises. We like to buy when it falls but it can't be shown on one graph.
Anita N Smith (2 years ago)
best explanation yet...thanks
OmAr LiVeS (2 years ago)
u the man bro. i'm still kinda iffy on the whole sell at a stop-limit order or stop order though. so stop at 25 sells around 25? so it could sell at 24.50 and 25.50? right depending on what the market price is at that time?
FKeith Arline (2 years ago)
This is the best explanation of market, limit, stop and stop-limit that I have seen so far. Thanks a million.
Bionic Turtle (2 years ago)
+FKeith Arline You're welcome! We are glad it was helpful!
Luis Bruno (2 years ago)
Trailing stop?
jenny more (2 years ago)
Why does some give this a thumbs down? Please explain the reasoning so I can understand
jenny more (2 years ago)
Great explanation, I finally get it now
mark malfa (2 years ago)
excellent...clearest explanation I have seen so far when comparing various sources
none l (3 months ago)
I'm not sure about that....but he Definitely explained something in a way that worked better for me. Saying a Stop AND Limit instead of Stop-Limit made me understand it ...finally.
Bionic Turtle (2 years ago)
+mark malfa Thanks for watching! We are glad this was helpful!
Bronzebk (2 years ago)
Good vid.
Amani Harris (2 years ago)
Also, can I place a limit sell above the current price? So say the market is at $30, like in your example, and I want to ensure a certain profit (for sake of the example say 10% gain), could i set a market limit for $33? ( I do understand that it can't be "ensured", but this is under the assumption that the price WILL rise) To explain this desire to set a limit sell above the current price: I'd want to set this limit sell because the stock hasn't been performing particularly well, but I expect that it will, but only 10% greater than the current price of $30.
Amani Harris (2 years ago)
Great video.. one question though: when you said the stop becomes a "stop and limit" (@4:24) did you mean "stop and market"?
Sean Rojas (15 days ago)
Yes it should be stop and market not stop and limit since there is no guarantee on the price. Think of limit as a guaranteed proce
jenny more (2 years ago)
I was thinking the same thing.......anyone??
1Lifeonearth (2 years ago)
This helped me so much, thanks man!
Sakepuram Sreenath (2 years ago)
THANK U!!!!!!!!!!!!!!!!!!!!!!!
Sleeper (3 years ago)
Great explanation and chart. Thanks
MixedLine (3 years ago)
изволь переведите
Trance Lifting (3 years ago)
What happens if the current price of a stock is $10 and you place a buy-limit order for $11, and then the stock hits $11?
tisoy909 (3 years ago)
best explanation of the basic types out there
AGL (3 years ago)
Awesome!  Thanks!  The guitar at the end aint bad either!  :)
Starrm (3 years ago)
Why are stocks so much more difficult in real life then on the games?
Sung-Yen Sammy Tsai (3 years ago)
Wow, Thank-you so much for this video. I've always been confused about buy-limit stop limit...
Andrea Mcfarlane (3 years ago)
thank you thank you thank you
ruby nyc (3 years ago)
thank you
penn jillette (3 years ago)
stupid fucking video, can't believe so many idiots liked it. ass backwards demo
jenny more (2 years ago)
Stupid "fucking" video? A tad excessive, a lot of us found it a great explanation. Please post your explanation and we will see if it's better. If so then great, we will have even more knowledge
TradingPro (3 years ago)
He is using a 30$ mark to explain both sides of trade.  Sell at 30 buy it back at 25 or lower. It's called short selling a stock Buy at 30 sell it back  between 35-37 but if price jumps to 38 it will not be filled. same scenario in short selling side. Buy at 30 and sell it back  25-23 but if stock jumps lower to 24 order will never be filled. I hope this helps
Tony Chen (3 years ago)
Do you have the chart as a picture or pdf to download? 
chazmuska (3 years ago)
Why would you put a limit order to buy at $35 when the current price is at $30? Everything is backwards. You'd want to buy low and sell high....should be switched sides
Cahan Fowler (25 days ago)
Sometimes you are waiting for confirmation before purchasing long.
Cedric J (10 months ago)
+chazmuska he's not teaching trading strategies in this video, he's simply showing you the different types of orders that you could place given a current price, because there will be situations in which you would use all these different types of orders. When you learn about various trade strategies then they make much more sense. For example you may be waiting for price to break above a resistance area, let's say $30.00.If price breaks through this resistance area, this may indicate a move much higher in the market, so people place buy limit orders to get in as quick as possible if price breaks above a resistance area and thus reap the greatest reward.
Shivin Misra (11 months ago)
sounds correct to me, the limit is 35 to protect against a sudden surge in price beyond 35 when buying the stock at 30.
Anthony Gonzalez (1 year ago)
It can be used if you're expecting sudden upward volatility from a low position.
chazmuska (3 years ago)
+Harmin Hayer Yes, you are right about that! Some people like to put stops after a confirmed breakout.
Immollation1 (4 years ago)
Thank you!
xep5k (4 years ago)
Nice chart! Helps a lot!
E Dumas (4 years ago)
Great job... all in one short video ;-)
Bionic Turtle (4 years ago)
Thank you! We are happy to hear that you enjoyed our video!! :)
ed young (4 years ago)
lawrencekaori (4 years ago)
I don't understand of your Limit to sell order. If the current price is $30 and your limit to sell is $25 "or better", wouldn't it sell immediately? I thought that a limit sell order would be to sell at some price better than the current price, so your limit sell order would be at, say $32. When the price goes above that, it would sell. Am I getting this wrong?
Kiki Sui (1 month ago)
To actually make some good money with Forex you actually have to be ready to spend some money. The best strategy I can recommend is The *Blended Model Strategy* created by *Dmitry Vladislav* I make $1300 as a day trader daily using this strategy. you can search his name on Google+ and follow his team for more information.
Adonis Shropshire (3 months ago)
+lawrencekaori Exactly. If you have 1000 shares and the biggest order to buy is 200 then your order would get filled at different prices all above $25 (200 at $28, then 300 $27.89, etc) or at the first 1000 share order that comes in at a lower price above $25.
Nathan Casey (3 years ago)
+lawrencekaori No you don't understand that stocks just don't sell immediately. The broker has to find someone to sell them to who has a buy order. So putting it at 25 it has a better chance of being sold.
lawrencekaori (3 years ago)
Sorry, I am new to this stuff, but it seems to me that this is totally backwards and confusing. Having looked at it again I am more confused than before. At 59 sec a limit order of $35???? Why does this make sense when the current price is $30? Nathan, your example is also confusing, sorry. "If you bought the stock at 20 and now its at 30, putting a limit sell order at 25 means you'll only sell it at 25 and higher." So it would sell immediately, since it is now at 30, which is more than 25. Doesn't make sense. Does anyone know of any other videos on youtube that explains this better?
Nathan Casey (3 years ago)
Yeah. See it this way. If you bought the stock at 20 and now its at 30, putting a limit sell order at 25 means you'll only sell it at 25 and higher.
raazs35 (4 years ago)
Thanks awesome 
Bionic Turtle (4 years ago)
+raazs35 You're welcome!
Araby AlaEddin Hassan (4 years ago)
I bought gopro shares at 58.00. I out a 90.00 limit on it. Does this mean it will sell at 90.00 or automatically buy at 90.00
Santhosh Murali (4 years ago)
Bionic Turtle (4 years ago)
You're welcome +Santhosh Murali! Thank you for watching!
MrFloydReeves (4 years ago)
by far the easiest and best explanation on how to buy and sell stocks thay I've seen on the net.
KB GAN (4 years ago)
Simple chart with great explanation...Booyah !!!
chewls1133 (4 years ago)
I still can't decide which order type is overall the best route to take.  Im 100% new to buying and selling stocks.
The_vb (4 years ago)
I use limit order on buying and selling. It is safer, sometimes a stock fluctuating too much for market order
spc2941 (4 years ago)
Great explanation. Subscribed
great video.
Anon ymous (4 years ago)
Best Explanation I have seen so far! Thank you.
Thurgor Supreme (4 years ago)
This is the first set of trader videos I've stumbled across that's actually helpful with explaining things. From a newbie with the capital to justify this lifestyle, thank you so much.
Corporate Algorithm (4 years ago)
Very clear explaination.
HOLLOW HILL (5 years ago)
for market order do we have to pay more for taxes when we buy? or lose money and not know how but just get our stocks
The_vb (4 years ago)
I don't think you pay sale tax for trading stocks, u do pay when u make enough profit. I never paid when buy but I use online brokerage

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