Been trading for a few months now but still getting confused with order types.
Sometimes I use market orders and get terrible fills during volatile sessions. Limit orders seem safer but they don’t always execute.
What exactly happens with stop orders? When do you guys use each type?
Market orders fill instantly at whatever price is available. I got burned during NFP releases - filled 5 pips worse than expected because of crazy volatility.
Limit orders only fill at your price or better. Buy limits go below current price, sell limits above. They won’t execute if price doesn’t hit your level.
Stop orders turn into market orders when your trigger gets hit. I use buy stops above resistance for breakouts, sell stops below support to cut losses.
What I do: limits when I’m patient, market orders when I need in NOW, stops for exits and breakouts. Never market order during news unless you like getting screwed on fills.
Market orders fill instantly but you’ll get hit by the spread. Limits let you set your price but you might miss the move entirely if it runs away from you. Stops turn into market orders once they’re hit - perfect for protecting yourself or jumping on breakouts.
I stick with limits when it’s slow and use stops to manage risk.
Stops save you on bad trades calls