Order Types
How You Actually Enter the Market
The Order Ticket Is Where Theory Meets Reality
You can have a perfect setup and still lose money because you used the wrong order type. The order is not a formality – it is part of your system.
The Four Orders You Need
1. Market Order – "Fill me NOW, at any price"
- •Guarantees a fill, never guarantees a price
- •In fast futures markets (news, session open, breakout) the book thins out and you get slippage – filled 2, 5, sometimes 20 ticks worse than you saw
- •Use it when being in matters more than the entry price: emergency exits, stop-outs, invalidation
2. Limit Order – "Fill me at this price or better, or don't fill me at all"
- •Guarantees price, never guarantees a fill
- •Perfect for POI-based entries: you place it inside your Order Block or FVG and let price come to you
- •The risk: during a fast breakout price can trade through your level and never come back – you watch the move without being in it
3. Stop Order (Stop Market) – "When price hits X, send a market order"
- •This is what your stop loss usually is: protection that must execute
- •Because it converts to a market order, it carries the same slippage risk – in a violent move your 10-tick stop can fill at 16 ticks
4. Stop-Limit Order – "When price hits X, send a limit order at Y"
- •Caps your slippage, but can leave you unfilled in a crash
- •Dangerous as a stop loss: if price gaps past your limit, the order sits unfilled while your loss keeps growing
Comparison Table
| Order Type | Fill Guaranteed? | Price Guaranteed? | Slippage Risk | Typical Use |
|---|---|---|---|---|
| Market | Yes | No | High | Emergency exit, must-be-in entry |
| Limit | No | Yes | None | Entry at a POI, take profit |
| Stop (Market) | Yes | No | High | Stop loss, breakout entry |
| Stop-Limit | No | Yes (max) | None (but fill risk) | Controlled breakout entry |
Practical Rules for Futures
- •Stop losses: use stop market. An unfilled stop-limit in a fast market is how accounts die.
- •POI entries: use limit orders. If price never returns, that was not your trade.
- •Breakout entries: accept slippage or accept missed trades – pick one and backtest it, don't switch mid-week.
- •Around news: spreads widen and books thin. If your system does not have a tested news rule, be flat.
"The order type you choose is a risk decision, not a technical detail. Decide it once, write it into your plan, and stop improvising at the ticket."
Interactive Visual
This assumes a fixed dollar risk recalculated on the original balance, for simplicity. If you risk 1% of your CURRENT balance each time (as the position sizing formula above does), you technically never hit exactly zero – but after 100 consecutive losses you'd still be down to roughly a third of your starting capital, which is practically just as devastating.
Knowledge Check
1/3Which order guarantees a fill but not a price?