Orders and Execution
38 lessons in this track so far, in the order we suggest reading them.
Order Types
BeginnerOrder Types ExplainedMarket, limit, stop, stop-limit and trailing stop orders explained with examples. Learn what each order does, when to use it and the mistakes to avoid.BeginnerMarket OrdersA market order buys or sells immediately at the best available price. Learn how it fills, what slippage costs and when a market order is the wrong choice.BeginnerLimit OrdersA limit order trades only at your price or better. Learn how buy and sell limits work, why they may not fill, queue priority and how to set a smart limit price.BeginnerMarket vs Limit OrdersMarket orders fill now at an uncertain price; limit orders fix the price but may not fill. Compare costs, risks and the right situations for each order type.BeginnerStop OrdersA stop order becomes a market order once a trigger price trades. Learn how stop losses and buy stops work, where to place them and why stops can slip.BeginnerStop-Limit OrdersA stop-limit order becomes a limit order when its stop price trades. Learn how to set the stop and limit, when it protects you and when it can fail to fill.BeginnerTrailing Stop OrdersA trailing stop follows the price by a set amount or percentage and only moves in your favour. Learn how it works, how to set the distance and common pitfalls.
Time in Force and Conditions
IntermediateTime in Force: Day, GTC and GTD OrdersTime in force sets how long an order stays active. Learn day orders, good till cancelled, good till date and extended hours settings, with examples and pitfalls.IntermediateIOC and FOK OrdersImmediate or cancel and fill or kill orders must trade at once or be cancelled. Learn how they differ, when traders use them and how partial fills are handled.IntermediateAll or None OrdersAn all or none order must fill completely or not at all, but can wait to do so. Learn how AON orders work, why they often fill later and when they make sense.IntermediateOpening and Closing Orders: MOO, MOC, LOO, LOCMarket on open, market on close, limit on open and limit on close orders trade in the opening and closing auctions. Learn how they work, cut-off times and uses.
Advanced Orders
IntermediateBracket OrdersA bracket order attaches a stop loss and a profit target to an entry, and cancels one when the other fills. Learn how to set one up, with a worked example.IntermediateOCO OrdersA one cancels other order links two orders so that when one fills, the other is cancelled. Learn OCO exits, OCO breakout entries and how to avoid double fills.IntermediateOTO and OTOCO OrdersOTO orders send a second order only after the first fills; OTOCO adds an OCO pair of exits. Learn how these conditional orders automate a full trade plan.IntermediateHidden and Iceberg OrdersIceberg orders show only part of a large order; hidden orders show none of it. Learn how they work, their priority trade off and how to spot icebergs in the book.IntermediatePegged and Midpoint OrdersPegged orders move automatically with the bid, ask or midpoint. Learn primary, market and midpoint pegs, how they save spread costs and the risks of chasing.IntermediatePost-Only and Reduce-Only OrdersPost-only orders guarantee you add liquidity and pay maker fees; reduce-only orders can only shrink a position. Learn how both work on crypto and futures venues.
How Orders Get Filled
IntermediateMatching EnginesA matching engine is the system that pairs buy and sell orders on an exchange. Learn price time priority, pro rata matching, auctions and why it matters to you.IntermediateOrder Routing and Smart Order RoutingOrder routing decides which venue your order is sent to. Learn how brokers route orders, smart order routers, payment for order flow and how routing affects fills.IntermediateDirect Market Access and Sponsored AccessDirect market access lets traders send orders straight to an exchange's order book through a broker's systems. Learn how DMA works, its benefits, costs and rules.IntermediateLatency in TradingLatency is the delay between a market event and your reaction to it. Learn the sources of trading latency, how it is measured and when it matters for your trades.IntermediateExecution Reports and Trade ConfirmationsAfter you trade, you receive order acknowledgments, execution reports and a trade confirmation. Learn what each one shows and how to use them to check your fills.IntermediateBest Execution and Execution QualityBest execution is a broker's duty to get you the most favourable terms on orders. Learn what it covers, price improvement, routing reports and how to judge fills.IntermediateFill Probability and Queue PositionYour place in the order queue decides whether a limit order fills. Learn how queues work, how to estimate fill probability and why fills can be a warning sign.
Execution Costs and Algorithms
AdvancedTransaction CostsTransaction costs include commissions, spreads, slippage, market impact and missed trades. Learn each part, how to estimate it and why it decides profits.AdvancedSlippage AnalysisSlippage analysis compares your fills with benchmark prices to measure execution quality. Learn the benchmarks, the formula and how to act on results.AdvancedMarket ImpactMarket impact is the price movement caused by your own trading. Learn temporary and permanent impact, the square root rule of thumb and how large traders reduce it.AdvancedImplementation ShortfallImplementation shortfall compares a paper portfolio traded at the decision price with what you actually achieved. Learn the formula and its parts.AdvancedOptimal Execution and the Almgren-Chriss ModelOptimal execution balances market impact against price risk when trading large orders. Learn the Almgren-Chriss model, its trade off and what it means in practice.AdvancedVWAP, TWAP and POV ExecutionVWAP, TWAP and POV algorithms split large orders over time to reduce impact. Learn how each one schedules trades, its strengths and when to use it.
Trading Costs
IntermediateCommissions and FeesCommissions, exchange, clearing and regulatory fees add up. Learn how commission structures work, the fees hidden in each trade and how to compare brokers.IntermediateMarket Data FeesReal-time quotes and order book data often cost extra. Learn why exchanges charge for data, professional vs non-professional status and what data you actually need.IntermediateBorrow Fees and Stock Loan CostsShort sellers pay to borrow shares. Learn how borrow fees are set, easy and hard to borrow stocks, recalls, dividend payments and how fees affect a short trade.IntermediateFinancing and Overnight CostsHolding leveraged positions overnight costs money. Learn margin interest, forex swaps, CFD financing, carry costs and how to include them in your trade plan.IntermediateRoll CostsRolling futures from one month to the next can cost or earn money. Learn how roll costs arise in contango and backwardation and how they affect futures ETFs.IntermediateSpread CostsThe spread is often your biggest trading cost. Learn to calculate spread cost per trade and per year, compare markets and cut what you pay in spreads.IntermediateAll-In Trading CostYour all-in trading cost combines commissions, fees, spreads, slippage, financing and fixed costs. Learn to calculate cost per trade, per unit of risk and per year.IntermediateOpportunity CostOpportunity cost is the profit you give up by not trading, missing fills or tying up capital. Learn how to measure it and balance it against trading costs.