The 3 Stock Order Types Explained (Market Order, Limit Order, Stop Order)

What are the differences between market orders, limit order, stop limit orders, stop loss orders, and stop orders? This video covers the stock order types in detail so you understand how your stock market transactions are executed. Market orders execute the transaction as soon as possible at the current market price, which may not reflect the price you see when you initiate the transaction due to the bid-ask spread. Limit orders allow you to set limits on what amount you're willing to buy or sell at, although they are not guaranteed to be executed. There are two types of limit orders: day limit orders and good-til-cancelled limit orders. Stop orders function similarly to limit orders but look in the opposite direction: stop orders allow you to set a threshold to automatically sell or buy before a stock has risen or fallen too much. Stop loss orders refer to sell stop orders because they are generally used to stop a larger loss before it occurs.

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🕒 TIMESTAMPS 🕒

0:00 - What are stock order types?
2:07 - Market order
5:35 - Limit order
8:39 - Stop order
11:36 - Mutual funds

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Disclaimer: I am not a professional financial advisor nor a tax professional. The content presented in this video is for entertainment and educational purposes only.

[CaseyBurnsInvesting]

Welcome back my friend. Glad you’ve got the time to come back.

[sjsphotog]

Always put a stop loss under your buy to protect yourself from losing too much and lock in profits. You can use the custom order Tyler OBO and do the buy at the same time as setting the stop under it. Then keep moving up the stop every so often if the stock prices increases to seal in your gains

[AKFloorcare]

GREAT job ....very easy to understand. great editing. thank you

[sheikahcicada]

Best breakdown video I've come across, thank you Alex Rae!

[jeffreevidal]

Thank you so much. This was simple and right to the point.

[Andygg]

I have always wanted to know the difference between these. Thank you!

[alexruiz]

Great Explanation! Have you covered Trailing Stops in another video? Thanks!

[cesman]

WOWOWOWO YOU ARE GREAT SO SIMPLE EXPLAIN AND WITH EXAMPLES ... I LOVE YOUR VIDEO AND I AM SEARCHIN FOR MORE NEED TO LEARN QUICK I HAVE GREAT IDEAS AND I WANT TO TRY THEN ASAP MANY THANKS

[xA]

Hey Alex, are you still planning on doing videos on real estate? I would love to hear about the full process you went through in closing on your house. I'm looking into multifamily/house hacking myself but may hold off based on market conditions in my area. Appreciate your content!

[PraiseofMercy]

I have another topic request: bonds. You (and other financial advisors on YT) have spoken about putting a portion of one's portfolio in bonds, but I see a lot of articles over the past couple of years about negative yield bonds (yikes!) I don't see how that is a lower risk options than ETF's and index funds in the market we have now.

[stephenprice]

I'm stuck on understanding stop orders.

[thomasabbot]

Series of unfortunate events good book

[kitosan]

Limit order and Stop order. Why not do a call and put. You can also pick up some fees for your effort.