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Basic Order Types

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Market Order

Executes immediately at the best available price.
  • Use case: When you need immediate execution and price is less important
  • Example: Market buy 100 contracts → fills at current best ask price

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Limit Order

Rests on the order book at a specified price.
  • Use case: When you want price control and can wait for execution
  • Example: Limit buy 100100 @ 0.650.65 → only fills at $0.65 or better

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Time in Force

  • IOC : Immediate or Cancel - executes immediately for any available quantity, and cancels any unfilled remainder.
    • Example: IOC buy 10 contracts; if only 6 are available now, 6 fill and 4 are canceled.
  • FOK : Fill-Or-Kill - must be filled completely and immediately, or the entire order is canceled.
    • Example: FOK buy 10 contracts; if all 10 cannot fill right now, nothing is executed.
  • GTD : Good-Till-Date - stays active until a specific date/time, unless filled or canceled earlier.
    • Example: GTD limit buy valid until 2026-02-20 15:00 UTC.
  • GTC : Good-Till-Cancelled - stays active until fully filled or manually canceled (subject to platform-level max lifetime limits).
    • Example: Rest a GTC limit order on the book until market reaches your price.

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Conditional Order Types

Conditional orders are not placed immediately. They activate (“trigger”) when specific conditions are met.

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Stop Orders

Stop orders trigger when price moves to a predefined stop price, using the traded price. On a buy stop order, the order is triggered if someone trades at or above the stop price. On a sell stop order, the order is triggered if someone trades at or below the stop price.
Triggers when market trades at or through your stop price, then executes as a market order (immediate fill at best available price).
The market is currently trading at $0.70. You want to enter a short position
if the market trades below or at $0.60.
→ Stop Market SELL @ $0.60
→ Triggers when price ≤ $0.60
→ Sends market sell order → fills immediately
Directional logic:
  • BUY stop: Triggers at or above stop price (breakout entry or short exit)
  • SELL stop: Triggers at or below stop price (stop loss or long exit)

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Reverse Stop Orders

Reverse stop orders trigger when price moves in your desired direction. Used exclusively for take profit scenarios. A “reverse stop” is called “reverse” because it triggers in the opposite direction of a normal stop order.
Triggers when market trades at or through your target price (opposite direction from normal stop), then executes as a market order.
You're LONG at $0.60, want to take profit if price rises to $0.80
→ TP Market (Reverse Stop Market) SELL @ $0.80
→ Normal stop would trigger BELOW, but reverse stop triggers ABOVE
→ Triggers when price ≥ $0.80
→ Sends market sell order → fills immediately
Directional logic (reversed from normal stop):
  • BUY reverse stop: Triggers at or below target (opposite of normal buy stop)
  • SELL reverse stop: Triggers at or above target (opposite of normal sell stop)
Why “reverse”?
  • Normal SELL stop @ 0.60triggerswhenprice≤0.60 triggers when price ≤ 0.60 (price falling)
  • SELL reverse stop @ 0.80triggerswhenprice≥0.80 triggers when price ≥ 0.80 (price rising)
  • The trigger direction is reversed!

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Take Profit Orders (TP)

Parent-child orders: Automatically triggers a child order when a parent order fills.
Triggers when parent order is fully filled, then activates a reverse stop market order.
Place limit buy 100 @ $0.60 WITH TP Market @ $0.80
→ When buy fills → immediately activates reverse STOP Market SELL @ $0.80
→ That reverse stop triggers when price ≥ $0.80, and send a sell market order

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Stop Loss Orders (SL)

Parent-child orders: Automatically triggers a child order when a parent order fills.
Triggers when parent order is fully filled, then activates a stop market order.
Place limit buy 100 @ $0.60 WITH SL Market @ $0.55
→ When buy fills → immediately activates SL Market SELL @ $0.55
→ That SL Market is a stop order that triggers when price ≤ $0.55
→ That stop triggers when price ≤ $0.55, and send a sell market order

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Comparison

TypeTriggerExecutionPrimary Use
MarketImmediateBest priceNeed immediate fill
LimitRests on bookAt limit or betterPrice control
Stop MarketPrice moves againstMarket orderStop loss, breakout
Stop LimitPrice moves againstLimit orderStop loss with price protection
TP MarketParent fills + price moves forMarket via reverse stopTake profit
TP LimitParent fills + price moves forLimit via reverse stopTake profit with control
SL MarketParent fills + price moves againstMarket via stopStop loss from entry
SL LimitParent fills + price moves againstLimit via stopStop loss with price floor

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Key Concepts

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Stop vs Reverse Stop

  • Stop: Triggers when price moves AGAINST you (exit losses, enter breakouts)
  • Reverse Stop: Triggers when price moves FOR you (take profits)

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Parent-Child Orders

  • TP/SL orders are “meta-orders” that activate child orders when a parent fills
  • The child order itself is usually a stop or reverse stop order
  • This creates a two-step process: Parent fill → Child activation → Price trigger → Execution

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Trigger Direction Summary

SideStop (Loss/Breakout)Reverse Stop (Profit)
BUYTriggers ≥ stop priceTriggers ≤ target price
SELLTriggers ≤ stop priceTriggers ≥ target price