Stop Loss vs Stop Limit
These two order types are one word apart and produce opposite failure modes. One fails by price, the other by leaving you in the position — and for an unattended system, the second is the one that breaks things.
Tag
order types
Every StaxInvesting article tagged order types · 5 posts.
5 articles
Bracket Orders vs Standalone Stop and Target
A stop left resting after the target fills does not know the position is gone. A person watching a screen would probably notice. A program will not, unless someone wrote the code to look — which is why the automation case for brackets is stronger.
OCO Orders Explained
An unlinked stop left resting after a target fills does not know the position is gone. When it triggers, it opens a new one. OCO exists to prevent exactly that, and understanding where the linkage stops helping is the useful part.
Trailing Stops Explained
Most traders carry a mental model of a trailing stop as a floor. It is not — it is a trigger that sends an order, and the price you get is whatever the market offers. Understanding the difference is what separates a stop that helps from one that surprises you.
Order Types for Automated Execution: Which Ones Actually Fit
Market, limit, stop, and stop-limit are the core order types, and choosing among them is a tradeoff between certainty of fill and certainty of price. Automation changes the calculus, because software cannot watch a resting order and improvise the way a human can. This explains each order type honestly, including the ways stops do not work the way people assume, and which fit automated execution.