Summary.

 A Stop order becomes a Market order when the specified price is reached, while a Limit order is filled at or better than the specified price. Stop orders are used to buy above or sell below the market, while Limit orders are used to sell above or buy below the market.

The next type of order that I want to show you is the Stop order and a Limit order. Now a Stop order very simply is an order that when you place it on the screen, and the market touches the specified price it becomes a Market order. It's kind of like a trigger order. If we want to place a Stop order above the market, we simply click on the Stop button.

We drag on the screen, you'll notice that I have my left mouse button held down. As long as I hold my left mouse button down, I can scroll above the market, and it's green, it becomes a Buy/Stop. Track 'n Trade is smart enough to know that the rules of a Stop order are that you must buy above the market.

If I slide below, it would be a Sell/Stop, so you must sell below the market. If we wanted the market to continue higher, once it hit this price level, and continue higher, we could release the mouse button. Again, it's going to come up and ask us for the Order Confirmation. We can say "don't show me this again".

Again, confirm the "One Click Mode" for the Stop orders. I Accept this. Say okay. Next time I place a Stop order, it will not pop up the Confirmation box. At this point I now have a Buy/Stop placed above the market. You'll notice that it's green. If the market continues to rise in price, touches this level and continues to go through that price, I will become profitable from that point on.

If I wanted to place a Stop order below the market- very simply, I could drag an order drag it on the screen. You'll notice, just by releasing the mouse button I no longer have the Confirmation Boxes. Now I've bracketed this market, I now have the position on the market, where if I buy one, the market will rally and make money.

Or if it drops and hits this one, I will sell one and if the market continues to fall- I will make money! Let's go ahead and hit Exit chart. We're going to remove these two orders. Again, if we wanted to have this Confirmation not pop up, we could hit "don't ask me again". I'm going to leave it unchecked.

Say yes, and we're out of the market. We can come in with a Limit order, the Limit order is the same, only it has just the opposing rules. If we want to have a Sell Limit, we have to put it above the market. As long as I hold that left mouse button down while I'm dragging it, I can drag below the market.

I now have a Buy Limit, which is below the market. Notice that it turned green. If I release the mouse button it drops it onto the screen, and it is now an active order. The market must now come down, touch this price, be filled at or better the current price specified. Then continue to rally for me to become profitable.

If I hit the Limit order, put one above the market, you'll notice that it is a Sell Limit. Track 'n Trade is smart enough to know that because it's above the market and the rules for a Limit order are that it must sell above the market. If I release the mouse button, I've now bracketed this market.

The market must really up, touch this price, and then drop for me to become profitable. This is bracketing the market with Limit orders.

Key Insights.

- 🛑 Stop orders are triggered when the specified price is touched, converting them into Market orders.

- 🟢📈 Buy/Stop orders are used to buy above the market, while 🟥📉 Sell/Stop orders are used to sell below the market.

- ✅ Confirmation boxes can be disabled for faster order placement.

- 🟢📉 Buy Limit orders are placed below the market and require the market to drop and touch the specified price for activation.

- 🟥📈 Sell Limit orders are placed above the market and require the market to rally and touch the specified price for activation.

- ✅ Confirmation boxes can be disabled for faster order placement.

- 🔄 Placing Stop and Limit orders allows traders to bracket the market and potentially profit from both upward and downward movements.