Market Orders
A market order is executed immediately at the best available price. This is the simplest and fastest order type — you click buy or sell and the trade fills right away.
- Best for: Getting in or out of a position quickly.
- Trade-off: In fast-moving markets, the fill price may differ slightly from the quoted price (slippage).
Limit Orders
A limit order lets you specify the exact price at which you want to buy or sell. The order will only fill at your price or better.
- Buy limit: Placed below the current price — fills when the market drops to your level.
- Sell limit: Placed above the current price — fills when the market rises to your level.
- Best for: Entering positions at a specific price with no slippage risk.
- Trade-off: The order may never fill if the market doesn't reach your price.
Stop Orders
A stop order (also called a stop-loss) becomes a market order once a specified trigger price is reached.
- Buy stop: Placed above the current price — triggers when the market rises to your level.
- Sell stop: Placed below the current price — triggers when the market drops to your level.
- Best for: Protecting against losses or entering breakout trades.
- Trade-off: After triggering, the order fills at the next available price, which may include slippage.
Stop-Limit Orders
A stop-limit order combines a stop trigger with a limit price. Once the stop price is reached, the order becomes a limit order (not a market order), giving you price control.
- Best for: Controlling the maximum slippage on a stop order.
- Trade-off: If the market gaps past your limit price, the order may not fill at all.
Bracket Orders
A bracket order is a three-part order: an entry order plus a take-profit limit and a stop-loss. When one exit side fills, the other is automatically cancelled.
- Best for: Setting predefined risk/reward before entering a trade.
- Note: Available on Pit Trader for futures and stocks. Set your bracket levels in the order ticket.
Choosing the Right Order Type
| Order Type | Speed | Price Control | Best Use |
|---|---|---|---|
| Market | Instant | None | Quick fills |
| Limit | May not fill | Full | Specific entries/exits |
| Stop | After trigger | None | Stop-losses, breakouts |
| Stop-Limit | After trigger | Full | Controlled stops |
| Bracket | After entry | Full (exits) | Pre-set risk/reward |
For most traders, market orders handle entries and exits during active trading, while limit orders are ideal for planned entries. Always use a stop order or bracket to manage downside risk — especially with contract limits and consistency rules in play.